ANNEX C. Country Tables

This annex provides country tables which detail the main results from Annex B as well as the variables that lie behind these results. As with Annex B results are given for a variety of different assumptions about age, income, student debt levels, and length of education. The results correspond to the different stylised education scenarios discussed in Chapter 4 of this study.

For each country, two tables are presented.1 The first table for each country focuses on the education scenario of a 17-year college student engaging in a four-year period of education, corresponding to an undergraduate degree. In this table, differing assumptions surrounding the financing of the student’s education are examined. In the second table for each country, it is assumed that all education spending is financed with retained earnings, but a variety of assumptions are examined regarding the students age and income, the length of the educational period, and whether the education is job-related or not.

In each table, the cost components of education are outlined, as discussed in Chapter 3 of this study and in Annex A. These costs include the direct costs of education less scholarship and grant income, as well as lost earnings. As discussed in Annex A and Chapter 3, these costs are offset by the tax system through the tax rate on foregone earnings, and the rate at which the tax system offsets direct costs. These two measures are also included. These components together comprise the total post-tax cost of education, which is what needs to be recouped in order to break even on a skills investment. Where a student borrows to finance the skills investment, the cost of this borrowing must also be recouped. A debt finance multiplier is included to account for the extent to which education finance increases or decreases the amount that needs to be recouped. This term corresponds to the F term in Annex A.

These costs must be recouped in the period after education after taxes. The tax rate on earnings after education is included in each table, as is the BEI in national currency units and as a percentage of earnings before education. The table then provides the five key measures outlined in this study, as are outlined in the cross-country tables in Annex B.

Australia

Table C.1. Comparing Financial Incentives for College Education with Different Financing Scenarios - Australia
Single, No Children, 17 Year-Old, Four Years of Education, 70% of the Average Wage					Currency: AUD
Scenario	No Borrowing	Direct Costs Borrowed, Low Interest Rate	All Costs Borrowed, Low Interest Rate	Direct Costs Borrowed, High Interest Rate	All Costs Borrowed, High Interest Rate
Non-Financing Education Costs
Direct Costs of Education	9587	9587	9587	9587	9587
Pre-Tax Scholarship Income	2371	2371	2371	2371	2371
Income Before Education	48932	48932	48932	48932	48932
Income During Education	19847	19847	19847	19847	19847
Pre-Tax Foregone Earnings	29086	29086	29086	29086	29086
AETR Before Education (%)	16.8	16.8	16.8	16.8	16.8
AETR During Education (Exclusive of Tax Expenditures) (%)	5.6	5.6	5.6	5.6	5.6
Value of Education Tax Credits % of Direct Costs	3.3	3.3	3.3	3.3	3.3
AETR During Education (Inclusive of Tax Expenditures) (%)	4.4	4.4	4.4	4.4	4.4
METR on Foregone Earnings (%)	24.4	24.4	24.4	24.4	24.4
Total Annual Non-Financing Costs of Education (Direct Costs & Foregone Earnings)	28960	28960	28960	28960	28960
Education Financing Costs
Fraction of Costs Borrowed	None	Direct Costs	All Costs	Direct Costs	All Costs
Total Amount Borrowed	0	9587	28960	9587	28960
Interest Rate (%)	NA	0.0	0.0	6.0	6.0
Annual Repayments	0	815	0	3260	0
Debt Finance Multiplier	1.00	0.58	0.00	1.42	0.00
Returns to Education
Breakeven Earnings Level	58805	57438	48932	60172	48932
AETR After Education (%)	19.9	19.6	16.8	20.3	16.8
Breakeven Earnings Increment	9873	8506	0	11240	0
Breakeven Earnings Increment % of Previous Wage	20.2	17.4	0.0	23.0	0.0
METR Breakeven Earnings Increment (%)	35.5	35.5	0.0	35.5	0.0
Marginal Effective Tax Rate on Skills (%)	19.1	16.5	0.0	21.1	0.0
Average Effective Tax Rate on Skills (Assumed 15% Return, %)	30.7	33.2	34.8	27.6	34.8
Average Effective Tax Rate on Skills (Return based on Labour Market Premium, %)	27.6	32.0	34.8	22.1	34.8
Government Costs and Returns
Government Educational Costs	20928	24937	49888	16918	49888
Marginal Returns to Costs Ratio	0.76	0.74	0.00	0.83	0.00
Average Returns to Costs Ratio (Return based on Labour Market Premium)	1.69	1.42	0.71	2.09	0.71
https://doi.org/10.1787/888933446720

Table C.2. Comparing Financial Incentives for Differing Savings-Financed Education Scenarios - Australia
Single, No Children, Annual Data							Currency: AUD
Age	17	27	32	40	32	40	50	50
Income Before Education, %AW	70	100	100	100	100	100	100	100
Income During Education, %AW	25	25	25	25	95	95	25	25
Years of Education	4	1	1	1	0.05	0.05	1	1
Education is Job Related	No	No	No	No	Yes	Yes	No	Yes
Financial Costs of Up-Skilling
Direct Costs of Education	9587	9587	9587	9587	6990	6990	9587	9587
Pre-Tax Scholarship Income	2371	2371	2371	2371	0	0	2371	0
Income Before Education	48932	69903	69903	69903	69903	69903	69903	69903
Income During Education	19847	19847	19847	19847	69728	69728	19847	17476
Pre-Tax Foregone Earnings	29086	50056	50056	50056	175	175	50056	52427
AETR Before Education (%)	16.8	22.3	22.3	22.3	22.3	22.3	22.3	22.3
AETR During Education (Exclusive of Tax Expenditures) (%)	5.6	5.6	5.6	5.6	22.3	22.3	5.6	5.0
Value of Education Tax Credits % of Direct Costs	3.3	3.3	3.3	3.3	34.2	34.2	3.3	9.2
AETR During Education (Inclusive of Tax Expenditures) (%)	4.4	4.4	4.4	4.4	18.8	18.8	4.4	0.0
METR on Foregone Earnings (%)	24.4	28.9	28.9	28.9	31.5	31.5	28.9	28.0
Total Costs of Education (Direct Costs & Foregone Earnings)	28960	42583	42583	42583	4718	4718	42583	46445
Financial Returns to Up-Skilling
Breakeven Earnings Level	58805	73414	73652	74223	70318	70382	75740	76270
AETR After Education (%)	19.9	22.7	22.7	22.8	22.3	22.3	23.0	23.0
Breakeven Earnings Increment	9873	3511	3749	4320	415	479	5837	6367
Breakeven Earnings Increment % of Previous Wage	20.2	5.0	5.4	6.2	0.6	0.7	8.4	9.1
METR Breakeven Earnings Increment (%)	35.5	31.5	31.5	31.5	31.5	31.5	31.5	31.5
Marginal Effective Tax Rate on Skills (%)	19.1	7.9	7.9	7.9	-4.0	-4.0	7.9	8.5
Average Effective Tax Rate on Skills (Assumed 15% Return, %)	30.7	27.5	27.1	26.1	10.4	7.2	23.6	23.0
Government Costs and Returns
Government Educational Costs	20928	28276	28276	28276	13663	13663	28276	26785
Marginal Returns to Costs Ratio	0.76	0.69	0.69	0.69	0.16	0.16	0.69	0.80
Average Returns to Costs Ratio (Assumed 15% Return)	2.96	2.93	2.74	2.38	0.27	0.23	1.76	1.86
https://doi.org/10.1787/888933446736

Austria

Table C.3. Comparing Financial Incentives for College Education with Different Financing Scenarios - Austria
Single, No Children, 17 Year-Old, Four Years of Education, 70% of the Average Wage					Currency: EUR
Scenario	No Borrowing	Direct Costs Borrowed, Low Interest Rate	All Costs Borrowed, Low Interest Rate	Direct Costs Borrowed, High Interest Rate	All Costs Borrowed, High Interest Rate
Non-Financing Education Costs
Direct Costs of Education	328	328	328	328	328
Pre-Tax Scholarship Income	1283	1283	1283	1283	1283
Income Before Education	27785	27785	27785	27785	27785
Income During Education	11207	11207	11207	11207	11207
Pre-Tax Foregone Earnings	16578	16578	16578	16578	16578
AETR Before Education (%)	10.2	10.2	10.2	10.2	10.2
AETR During Education (Exclusive of Tax Expenditures) (%)	-1.0	-1.0	-1.0	-1.0	-1.0
Value of Education Tax Credits % of Direct Costs	0.0	0.0	0.0	0.0	0.0
AETR During Education (Inclusive of Tax Expenditures) (%)	-1.0	-1.0	-1.0	-1.0	-1.0
METR on Foregone Earnings (%)	17.8	17.8	17.8	17.8	17.8
Total Annual Non-Financing Costs of Education (Direct Costs & Foregone Earnings)	12672	12672	12672	12672	12672
Education Financing Costs
Fraction of Costs Borrowed	None	Direct Costs	All Costs	Direct Costs	All Costs
Total Amount Borrowed	0	328	12672	328	12672
Interest Rate (%)	NA	0.0	0.0	6.0	6.0
Annual Repayments	0	28	1077	112	4309
Debt Finance Multiplier	1.00	0.59	0.59	1.41	1.41
Returns to Education
Breakeven Earnings Level	31638	31597	30049	31679	33227
AETR After Education (%)	12.2	12.2	11.4	12.2	12.9
Breakeven Earnings Increment	3853	3812	2264	3894	5443
Breakeven Earnings Increment % of Previous Wage	13.9	13.7	8.1	14.0	19.6
METR Breakeven Earnings Increment (%)	26.3	26.3	26.3	26.3	26.3
Marginal Effective Tax Rate on Skills (%)	9.1	9.0	9.1	9.3	9.1
Average Effective Tax Rate on Skills (Assumed 15% Return, %)	26.3	26.5	31.4	26.1	15.9
Average Effective Tax Rate on Skills (Return based on Labour Market Premium, %)	22.6	22.9	31.6	22.3	4.0
Government Costs and Returns
Government Educational Costs	14976	15112	20204	14841	9749
Marginal Returns to Costs Ratio	0.30	0.30	0.38	0.30	0.33
Average Returns to Costs Ratio (Return based on Labour Market Premium)	1.04	1.03	0.77	1.05	1.59
https://doi.org/10.1787/888933446746

Table C.4. Comparing Financial Incentives for Differing Savings-Financed Education Scenarios - Austria
Single, No Children, Annual Data							Currency: EUR
Age	17	27	32	40	32	40	50	50
Income Before Education, %AW	70	100	100	100	100	100	100	100
Income During Education, %AW	25	25	25	25	95	95	25	25
Years of Education	4	1	1	1	0.05	0.05	1	1
Education is Job Related	No	No	No	No	Yes	Yes	No	Yes
Financial Costs of Up-Skilling
Direct Costs of Education	328	328	328	328	3926	3926	328	328
Pre-Tax Scholarship Income	1283	1283	1283	1283	0	0	1283	0
Income Before Education	27785	39693	39693	39693	39693	39693	39693	39693
Income During Education	11207	11207	11207	11207	39593	39593	11207	9923
Pre-Tax Foregone Earnings	16578	28486	28486	28486	99	99	28486	29769
AETR Before Education (%)	10.2	15.5	15.5	15.5	15.5	15.5	15.5	15.5
AETR During Education (Exclusive of Tax Expenditures) (%)	-1.0	-1.0	-1.0	-1.0	15.5	15.5	-1.0	-1.1
Value of Education Tax Credits % of Direct Costs	0.0	0.0	0.0	0.0	40.9	40.9	0.0	0.0
AETR During Education (Inclusive of Tax Expenditures) (%)	-1.0	-1.0	-1.0	-1.0	11.4	11.4	-1.0	-1.1
METR on Foregone Earnings (%)	17.8	22.0	22.0	22.0	31.0	31.0	22.0	21.0
Total Costs of Education (Direct Costs & Foregone Earnings)	12672	21271	21271	21271	2389	2389	21271	23838
Financial Returns to Up-Skilling
Breakeven Earnings Level	31638	41477	41610	41936	39908	39945	42867	43250
AETR After Education (%)	12.2	16.2	16.2	16.3	15.6	15.6	16.6	16.8
Breakeven Earnings Increment	3853	1785	1917	2243	215	252	3175	3558
Breakeven Earnings Increment % of Previous Wage	13.9	4.5	4.8	5.7	0.5	0.6	8.0	9.0
METR Breakeven Earnings Increment (%)	26.3	31.0	31.0	31.0	31.0	31.0	31.0	31.0
Marginal Effective Tax Rate on Skills (%)	9.1	10.7	10.7	10.7	-16.2	-16.2	10.7	12.9
Average Effective Tax Rate on Skills (Assumed 15% Return, %)	26.3	26.4	26.1	25.3	5.4	1.0	22.9	22.9
Government Costs and Returns
Government Educational Costs	14976	18285	18285	18285	12379	12379	18285	17002
Marginal Returns to Costs Ratio	0.30	0.52	0.52	0.52	0.09	0.09	0.52	0.63
Average Returns to Costs Ratio (Assumed 15% Return)	1.94	2.33	2.17	1.85	0.16	0.14	1.31	1.41
https://doi.org/10.1787/888933446754

Belgium

Table C.5. Comparing Financial Incentives for College Education with Different Financing Scenarios - Belgium
Single, No Children, 17 Year-Old, Four Years of Education, 70% of the Average Wage					Currency: EUR
Scenario	No Borrowing	Direct Costs Borrowed, Low Interest Rate	All Costs Borrowed, Low Interest Rate	Direct Costs Borrowed, High Interest Rate	All Costs Borrowed, High Interest Rate
Non-Financing Education Costs
Direct Costs of Education	630	630	630	630	630
Pre-Tax Scholarship Income	1898	1898	1898	1898	1898
Income Before Education	31245	31245	31245	31245	31245
Income During Education	13057	13057	13057	13057	13057
Pre-Tax Foregone Earnings	18188	18188	18188	18188	18188
AETR Before Education (%)	23.4	23.4	23.4	23.4	23.4
AETR During Education (Exclusive of Tax Expenditures) (%)	8.6	8.6	8.6	8.6	8.6
Value of Education Tax Credits % of Direct Costs	-88.4	-88.4	-88.4	-88.4	-88.4
AETR During Education (Inclusive of Tax Expenditures) (%)	0.0	0.0	0.0	0.0	0.0
METR on Foregone Earnings (%)	34.1	34.1	34.1	34.1	34.1
Total Annual Non-Financing Costs of Education (Direct Costs & Foregone Earnings)	9598	9598	9598	9598	9598
Education Financing Costs
Fraction of Costs Borrowed	None	Direct Costs	All Costs	Direct Costs	All Costs
Total Amount Borrowed	0	630	9598	630	9598
Interest Rate (%)	NA	0.0	0.0	6.0	6.0
Annual Repayments	0	54	816	214	3263
Debt Finance Multiplier	1.00	0.60	0.60	1.40	1.40
Returns to Education
Breakeven Earnings Level	35163	35063	33644	35263	36682
AETR After Education (%)	25.5	25.5	24.8	25.6	26.1
Breakeven Earnings Increment	3918	3818	2398	4018	5437
Breakeven Earnings Increment % of Previous Wage	12.5	12.2	7.7	12.9	17.4
METR Breakeven Earnings Increment (%)	42.1	42.1	42.9	42.0	41.7
Marginal Effective Tax Rate on Skills (%)	-2.1	-3.2	-0.7	-1.1	-2.8
Average Effective Tax Rate on Skills (Assumed 15% Return, %)	36.3	36.7	42.9	35.9	24.7
Average Effective Tax Rate on Skills (Return based on Labour Market Premium, %)	26.8	27.7	40.5	25.9	2.7
Government Costs and Returns
Government Educational Costs	20870	21120	24677	20620	17063
Marginal Returns to Costs Ratio	0.33	0.34	0.48	0.33	0.29
Average Returns to Costs Ratio (Return based on Labour Market Premium)	1.01	0.99	0.85	1.02	1.23
https://doi.org/10.1787/888933446768

Table C.6. Comparing Financial Incentives for Differing Savings-Financed Education Scenarios - Belgium
Single, No Children, Annual Data							Currency: EUR
Age	17	27	32	40	32	40	50	50
Income Before Education, %AW	70	100	100	100	100	100	100	100
Income During Education, %AW	25	25	25	25	95	95	25	25
Years of Education	4	1	1	1	0.05	0.05	1	1
Education is Job Related	No	No	No	No	Yes	Yes	No	Yes
Financial Costs of Up-Skilling
Direct Costs of Education	630	630	630	630	4274	4274	630	630
Pre-Tax Scholarship Income	1898	1898	1898	1898	0	0	1898	0
Income Before Education	31245	44636	44636	44636	44636	44636	44636	44636
Income During Education	13057	13057	13057	13057	44524	44524	13057	11159
Pre-Tax Foregone Earnings	18188	31579	31579	31579	112	112	31579	33477
AETR Before Education (%)	23.4	28.8	28.8	28.8	28.8	28.8	28.8	28.8
AETR During Education (Exclusive of Tax Expenditures) (%)	8.6	8.6	8.6	8.6	28.8	28.8	8.6	4.8
Value of Education Tax Credits % of Direct Costs	-88.4	-45.8	-45.8	-45.8	49.1	49.1	-45.8	32.2
AETR During Education (Inclusive of Tax Expenditures) (%)	0.0	4.1	4.1	4.1	24.1	24.1	4.1	3.0
METR on Foregone Earnings (%)	34.1	37.2	37.2	37.2	45.3	45.3	37.2	36.8
Total Costs of Education (Direct Costs & Foregone Earnings)	9598	17982	17982	17982	2236	2236	17982	21576
Financial Returns to Up-Skilling
Breakeven Earnings Level	35163	46679	46872	47393	44914	44979	49344	50284
AETR After Education (%)	25.5	29.5	29.6	29.8	28.9	29.0	30.4	30.7
Breakeven Earnings Increment	3918	2043	2236	2757	278	343	4708	5648
Breakeven Earnings Increment % of Previous Wage	12.5	4.6	5.0	6.2	0.6	0.8	10.5	12.7
METR Breakeven Earnings Increment (%)	42.1	45.3	45.3	45.3	45.3	45.3	45.3	45.3
Marginal Effective Tax Rate on Skills (%)	-2.1	7.8	7.8	7.8	-7.3	-7.3	7.8	13.5
Average Effective Tax Rate on Skills (Assumed 15% Return, %)	36.3	36.7	35.9	33.7	12.5	4.9	25.5	25.2
Government Costs and Returns
Government Educational Costs	20870	25877	25877	25877	13799	13799	25877	24181
Marginal Returns to Costs Ratio	0.33	0.58	0.58	0.58	0.13	0.13	0.58	0.74
Average Returns to Costs Ratio (Assumed 15% Return)	2.19	2.51	2.30	1.86	0.22	0.17	1.09	1.17
https://doi.org/10.1787/888933446777

Canada

Table C.7. Comparing Financial Incentives for College Education with Different Financing Scenarios - Canada
Single, No Children, 17 Year-Old, Four Years of Education, 70% of the Average Wage					Currency: CAD
Scenario	No Borrowing	Direct Costs Borrowed, Low Interest Rate	All Costs Borrowed, Low Interest Rate	Direct Costs Borrowed, High Interest Rate	All Costs Borrowed, High Interest Rate
Non-Financing Education Costs
Direct Costs of Education	5667	5667	5667	5667	5667
Pre-Tax Scholarship Income	856	856	856	856	856
Income Before Education	31828	31828	31828	31828	31828
Income During Education	12224	12224	12224	12224	12224
Pre-Tax Foregone Earnings	19605	19605	19605	19605	19605
AETR Before Education (%)	12.4	12.4	12.4	12.4	12.4
AETR During Education (Exclusive of Tax Expenditures) (%)	-4.8	-4.8	-4.8	-4.8	-4.8
Value of Education Tax Credits % of Direct Costs	5.3	5.3	5.3	5.3	5.3
AETR During Education (Inclusive of Tax Expenditures) (%)	-6.9	-6.9	-6.9	-6.9	-6.9
METR on Foregone Earnings (%)	23.2	23.2	23.2	23.2	23.2
Total Annual Non-Financing Costs of Education (Direct Costs & Foregone Earnings)	19610	19610	19610	19610	19610
Education Financing Costs
Fraction of Costs Borrowed	None	Direct Costs	All Costs	Direct Costs	All Costs
Total Amount Borrowed	0	5667	19610	5667	19610
Interest Rate (%)	NA	0.0	0.0	6.0	6.0
Annual Repayments	0	482	1667	1927	6667
Debt Finance Multiplier	1.00	0.53	0.53	1.36	1.36
Returns to Education
Breakeven Earnings Level	35996	35266	33466	36553	37973
AETR After Education (%)	13.2	13.1	12.7	13.3	13.6
Breakeven Earnings Increment	4168	3438	1638	4725	6145
Breakeven Earnings Increment % of Previous Wage	13.1	10.8	5.1	14.8	19.3
METR Breakeven Earnings Increment (%)	18.7	18.7	18.7	18.7	19.4
Marginal Effective Tax Rate on Skills (%)	-31.3	-43.9	-96.3	-26.9	-25.8
Average Effective Tax Rate on Skills (Assumed 15% Return, %)	22.9	24.9	28.8	19.8	7.6
Average Effective Tax Rate on Skills (Return based on Labour Market Premium, %)	21.5	23.9	28.5	17.9	3.8
Government Costs and Returns
Government Educational Costs	26408	29055	35586	24385	19426
Marginal Returns to Costs Ratio	0.17	0.18	0.24	0.17	0.18
Average Returns to Costs Ratio (Return based on Labour Market Premium)	0.98	0.89	0.73	1.06	1.33
https://doi.org/10.1787/888933446781

Table C.8. Comparing Financial Incentives for Differing Savings-Financed Education Scenarios - Canada
Single, No Children, Annual Data							Currency: CAD
Age	17	27	32	40	32	40	50	50
Income Before Education, %AW	70	100	100	100	100	100	100	100
Income During Education, %AW	25	25	25	25	95	95	25	25
Years of Education	4	1	1	1	0.05	0.05	1	1
Education is Job Related	No	No	No	No	Yes	Yes	No	Yes
Financial Costs of Up-Skilling
Direct Costs of Education	5667	5667	5667	5667	4616	4616	5667	5667
Pre-Tax Scholarship Income	856	856	856	856	0	0	856	0
Income Before Education	31828	45469	45469	45469	45469	45469	45469	45469
Income During Education	12224	12224	12224	12224	45355	45355	12224	11367
Pre-Tax Foregone Earnings	19605	33245	33245	33245	114	114	33245	34102
AETR Before Education (%)	12.4	15.8	15.8	15.8	15.3	15.3	15.8	15.8
AETR During Education (Exclusive of Tax Expenditures) (%)	-4.8	-4.8	-4.8	-4.8	15.2	15.2	-4.8	-7.4
Value of Education Tax Credits % of Direct Costs	5.3	5.3	5.3	5.3	20.1	20.1	5.3	0.1
AETR During Education (Inclusive of Tax Expenditures) (%)	-6.9	-6.9	-6.9	-6.9	13.2	13.2	-6.9	-7.4
METR on Foregone Earnings (%)	23.2	23.4	23.4	23.4	30.2	30.2	23.4	23.6
Total Costs of Education (Direct Costs & Foregone Earnings)	19610	30010	30010	30010	3770	3770	30010	31723
Financial Returns to Up-Skilling
Breakeven Earnings Level	35996	47863	48040	48480	45805	45862	49747	50002
AETR After Education (%)	13.2	16.6	16.6	16.7	15.4	15.4	17.1	17.2
Breakeven Earnings Increment	4168	2394	2571	3011	336	393	4278	4533
Breakeven Earnings Increment % of Previous Wage	13.1	5.3	5.7	6.6	0.7	0.9	9.4	10.0
METR Breakeven Earnings Increment (%)	18.7	30.2	30.2	30.2	30.2	30.2	30.5	30.5
Marginal Effective Tax Rate on Skills (%)	-31.3	8.0	8.0	8.0	12.4	12.4	8.4	9.7
Average Effective Tax Rate on Skills (Assumed 15% Return, %)	22.9	25.7	25.3	24.4	17.0	14.8	21.7	21.7
Government Costs and Returns
Government Educational Costs	26408	26289	26289	26289	17216	17216	26289	25439
Marginal Returns to Costs Ratio	0.17	0.49	0.49	0.49	0.09	0.09	0.50	0.55
Average Returns to Costs Ratio (Assumed 15% Return)	1.17	1.84	1.72	1.47	0.13	0.11	1.04	1.07
https://doi.org/10.1787/888933446795

Chile

Table C.9. Comparing Financial Incentives for College Education with Different Financing Scenarios - Chile
Single, No Children, 17 Year-Old, Four Years of Education, 70% of the Average Wage				Currency: CLP
Scenario	No Borrowing	Direct Costs Borrowed, Low Interest Rate	All Costs Borrowed, Low Interest Rate	Direct Costs Borrowed, High Interest Rate	All Costs Borrowed, High Interest Rate
Non-Financing Education Costs
Direct Costs of Education	1981921	1981921	1981921	1981921	1981921
Pre-Tax Scholarship Income	186736	186736	186736	186736	186736
Income Before Education	4062865	4062865	4062865	4062865	4062865
Income During Education	1637759	1637759	1637759	1637759	1637759
Pre-Tax Foregone Earnings	2425106	2425106	2425106	2425106	2425106
AETR Before Education (%)	0.0	0.0	0.0	0.0	0.0
AETR During Education (Exclusive of Tax Expenditures) (%)	0.0	0.0	0.0	0.0	0.0
Value of Education Tax Credits % of Direct Costs	0.0	0.0	0.0	0.0	0.0
AETR During Education (Inclusive of Tax Expenditures) (%)	0.0	0.0	0.0	0.0	0.0
METR on Foregone Earnings (%)	0.0	0.0	0.0	0.0	0.0
Total Annual Non-Financing Costs of Education (Direct Costs & Foregone Earnings)	4220290	4220290	4220290	4220290	4220290
Education Financing Costs
Fraction of Costs Borrowed	None	Direct Costs	All Costs	Direct Costs	All Costs
Total Amount Borrowed	0	1981921	4220290	1981921	4220290
Interest Rate (%)	NA	0.0	0.0	6.0	6.0
Annual Repayments	0	168459	358716	673836	1434863
Debt Finance Multiplier	1.00	0.59	0.59	1.41	1.41
Returns to Education
Breakeven Earnings Level	5008570	4825371	4618467	5191770	5398674
AETR After Education (%)	0.0	0.0	0.0	0.0	0.0
Breakeven Earnings Increment	945705	762506	555602	1128905	1335809
Breakeven Earnings Increment % of Previous Wage	23.3	18.8	13.7	27.8	32.9
METR Breakeven Earnings Increment (%)	0.0	0.0	0.0	0.0	0.0
Marginal Effective Tax Rate on Skills (%)	0.0	0.0	0.0	0.0	0.0
Average Effective Tax Rate on Skills (Assumed 15% Return, %)	0.0	4.5	7.1	-6.7	-17.0
Average Effective Tax Rate on Skills (Return based on Labour Market Premium, %)	2.1	3.9	5.0	-0.7	-4.8
Government Costs and Returns
Government Educational Costs	888540	1706082	2629410	70998	-852330
Marginal Returns to Costs Ratio	0.00	0.00	0.00	0.00	0.00
Average Returns to Costs Ratio (Return based on Labour Market Premium)	0.83	0.43	0.28	10.44	-0.87
https://doi.org/10.1787/888933446804

Table C.10. Comparing Financial Incentives for Differing Savings-Financed Education Scenarios - Chile
Single, No Children, Annual Data							Currency: CLP
Age	17	27	32	40	32	40	50	50
Income Before Education, %AW	70	100	100	100	100	100	100	100
Income During Education, %AW	25	25	25	25	95	95	25	25
Years of Education	4	1	1	1	0.05	0.05	1	1
Education is Job Related	No	No	No	No	Yes	Yes	No	Yes
Financial Costs of Up-Skilling
Direct Costs of Education	1981921	1981921	1981921	1981921	590733	590733	1981921	1981921
Pre-Tax Scholarship Income	186736	186736	186736	186736	0	0	186736	0
Income Before Education	4062865	5804093	5804093	5804093	5804093	5804093	5804093	5804093
Income During Education	1637759	1637759	1637759	1637759	5789583	5789583	1637759	1451023
Pre-Tax Foregone Earnings	2425106	4166334	4166334	4166334	14510	14510	4166334	4353070
AETR Before Education (%)	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0
AETR During Education (Exclusive of Tax Expenditures) (%)	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0
Value of Education Tax Credits % of Direct Costs	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0
AETR During Education (Inclusive of Tax Expenditures) (%)	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0
METR on Foregone Earnings (%)	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0
Total Costs of Education (Direct Costs & Foregone Earnings)	4220290	5961518	5961518	5961518	605243	605243	5961518	6334990
Financial Returns to Up-Skilling
Breakeven Earnings Level	5008570	6149212	6174768	6237808	5841726	5848126	6417923	6456377
AETR After Education (%)	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0
Breakeven Earnings Increment	945705	345119	370675	433715	37633	44033	613830	652284
Breakeven Earnings Increment % of Previous Wage	23.3	5.9	6.4	7.5	0.6	0.8	10.6	11.2
METR Breakeven Earnings Increment (%)	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0
Marginal Effective Tax Rate on Skills (%)	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0
Average Effective Tax Rate on Skills (Assumed 15% Return, %)	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0
Government Costs and Returns
Government Educational Costs	888540	888540	888540	888540	701804	701804	888540	701804
Marginal Returns to Costs Ratio	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0
Average Returns to Costs Ratio (Assumed 15% Return)	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0
https://doi.org/10.1787/888933446814

Czech Republic

Table C.11. Comparing Financial Incentives for College Education with Different Financing Scenarios - Czech Republic
Single, No Children, 17 Year-Old, Four Years of Education, 70% of the Average Wage					Currency: CZK
Scenario	No Borrowing	Direct Costs Borrowed, Low Interest Rate	All Costs Borrowed, Low Interest Rate	Direct Costs Borrowed, High Interest Rate	All Costs Borrowed, High Interest Rate
Non-Financing Education Costs
Direct Costs of Education	9814	9814	9814	9814	9814
Pre-Tax Scholarship Income	1530	1530	1530	1530	1530
Income Before Education	206691	206691	206691	206691	206691
Income During Education	75348	75348	75348	75348	75348
Pre-Tax Foregone Earnings	131343	131343	131343	131343	131343
AETR Before Education (%)	8.8	8.8	8.8	8.8	8.8
AETR During Education (Exclusive of Tax Expenditures) (%)	0.0	0.0	0.0	0.0	0.0
Value of Education Tax Credits % of Direct Costs	0.0	0.0	0.0	0.0	0.0
AETR During Education (Inclusive of Tax Expenditures) (%)	0.0	0.0	0.0	0.0	0.0
METR on Foregone Earnings (%)	13.8	13.8	13.8	13.8	13.8
Total Annual Non-Financing Costs of Education (Direct Costs & Foregone Earnings)	121493	121493	121493	121493	121493
Education Financing Costs
Fraction of Costs Borrowed	None	Direct Costs	All Costs	Direct Costs	All Costs
Total Amount Borrowed	0	9814	121493	9814	121493
Interest Rate (%)	NA	0.0	0.0	6.0	6.0
Annual Repayments	0	834	10327	3337	41307
Debt Finance Multiplier	1.00	0.59	0.59	1.41	1.41
Returns to Education
Breakeven Earnings Level	240765	239629	226709	241900	254820
AETR After Education (%)	10.4	10.3	9.8	10.4	10.9
Breakeven Earnings Increment	34074	32938	20018	35209	48129
Breakeven Earnings Increment % of Previous Wage	16.5	15.9	9.7	17.0	23.3
METR Breakeven Earnings Increment (%)	20.1	20.1	20.1	20.1	20.1
Marginal Effective Tax Rate on Skills (%)	8.2	7.8	8.2	8.6	8.2
Average Effective Tax Rate on Skills (Assumed 15% Return, %)	17.6	18.3	23.2	17.0	5.6
Average Effective Tax Rate on Skills (Return based on Labour Market Premium, %)	18.2	18.7	22.5	17.7	8.8
Government Costs and Returns
Government Educational Costs	122199	126248	172315	118151	72084
Marginal Returns to Costs Ratio	0.25	0.25	0.30	0.25	0.30
Average Returns to Costs Ratio (Return based on Labour Market Premium)	1.56	1.51	1.10	1.61	2.64
https://doi.org/10.1787/888933446823

Table C.12. Comparing Financial Incentives for Differing Savings-Financed Education Scenarios - Czech Republic
Single, No Children, Annual Data							Currency: CZK
Age	17	27	32	40	32	40	50	50
Income Before Education, %AW	70	100	100	100	100	100	100	100
Income During Education, %AW	25	25	25	25	95	95	25	25
Years of Education	4	1	1	1	0.05	0.05	1	1
Education is Job Related	No	No	No	No	Yes	Yes	No	Yes
Financial Costs of Up-Skilling
Direct Costs of Education	9814	9814	9814	9814	29048	29048	9814	9814
Pre-Tax Scholarship Income	1530	1530	1530	1530	0	0	1530	0
Income Before Education	206691	295273	295273	295273	295273	295273	295273	295273
Income During Education	75348	75348	75348	75348	294535	294535	75348	73818
Pre-Tax Foregone Earnings	131343	219925	219925	219925	738	738	219925	221455
AETR Before Education (%)	8.8	12.2	12.2	12.2	12.1	12.1	12.2	12.2
AETR During Education (Exclusive of Tax Expenditures) (%)	0.0	0.0	0.0	0.0	12.1	12.1	0.0	0.0
Value of Education Tax Credits % of Direct Costs	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0
AETR During Education (Inclusive of Tax Expenditures) (%)	0.0	0.0	0.0	0.0	12.1	12.1	0.0	0.0
METR on Foregone Earnings (%)	13.8	16.3	16.3	16.3	20.1	20.1	16.3	16.2
Total Costs of Education (Direct Costs & Foregone Earnings)	121493	192270	192270	192270	29638	29638	192270	195329
Financial Returns to Up-Skilling
Breakeven Earnings Level	240765	309204	310235	312780	297579	297972	320050	320445
AETR After Education (%)	10.4	12.5	12.6	12.6	12.2	12.2	12.8	12.8
Breakeven Earnings Increment	34074	13931	14962	17507	2306	2699	24777	25172
Breakeven Earnings Increment % of Previous Wage	16.5	4.7	5.1	5.9	0.8	0.9	8.4	8.5
METR Breakeven Earnings Increment (%)	20.1	20.1	20.1	20.1	20.1	20.1	20.1	20.1
Marginal Effective Tax Rate on Skills (%)	8.2	5.2	5.2	5.2	19.7	19.7	5.2	5.4
Average Effective Tax Rate on Skills (Assumed 15% Return, %)	17.6	16.6	16.3	15.7	19.8	19.7	13.8	13.8
Government Costs and Returns
Government Educational Costs	122199	140004	140004	140004	102684	102684	140004	138475
Marginal Returns to Costs Ratio	0.25	0.35	0.35	0.35	0.07	0.07	0.35	0.35
Average Returns to Costs Ratio (Assumed 15% Return)	1.21	1.46	1.36	1.17	0.09	0.08	0.82	0.83
https://doi.org/10.1787/888933446830

Denmark

Table C.13. Comparing Financial Incentives for College Education with Different Financing Scenarios - Denmark
Single, No Children, 17 Year-Old, Four Years of Education, 70% of the Average Wage					Currency: DKK
Scenario	No Borrowing	Direct Costs Borrowed, Low Interest Rate	All Costs Borrowed, Low Interest Rate	Direct Costs Borrowed, High Interest Rate	All Costs Borrowed, High Interest Rate
Non-Financing Education Costs
Direct Costs of Education	8917	8917	8917	8917	8917
Pre-Tax Scholarship Income	48682	48682	48682	48682	48682
Income Before Education	270520	270520	270520	270520	270520
Income During Education	145296	145296	145296	145296	145296
Pre-Tax Foregone Earnings	125223	125223	125223	125223	125223
AETR Before Education (%)	33.7	33.7	33.7	33.7	34.0
AETR During Education (Exclusive of Tax Expenditures) (%)	27.4	27.4	27.4	27.4	27.4
Value of Education Tax Credits % of Direct Costs	-4.7	-4.7	-4.7	-4.7	-4.7
AETR During Education (Inclusive of Tax Expenditures) (%)	26.1	26.1	26.1	26.1	26.1
METR on Foregone Earnings (%)	40.9	40.9	40.9	40.9	40.9
Total Annual Non-Financing Costs of Education (Direct Costs & Foregone Earnings)	32376	32376	32376	32376	32376
Education Financing Costs
Fraction of Costs Borrowed	None	Direct Costs	All Costs	Direct Costs	All Costs
Total Amount Borrowed	0	8917	32376	8917	32376
Interest Rate (%)	NA	0.0	0.0	6.0	6.0
Annual Repayments	0	758	2752	3032	11008
Debt Finance Multiplier	1.00	0.49	0.48	1.32	1.31
Returns to Education
Breakeven Earnings Level	282562	280864	276282	283637	286354
AETR After Education (%)	34.0	33.9	33.8	34.0	34.1
Breakeven Earnings Increment	12042	10344	5763	13118	15834
Breakeven Earnings Increment % of Previous Wage	4.5	3.8	2.1	4.8	5.9
METR Breakeven Earnings Increment (%)	40.9	40.9	40.9	40.9	40.9
Marginal Effective Tax Rate on Skills (%)	-56.0	-73.7	-89.7	-49.5	-68.3
Average Effective Tax Rate on Skills (Assumed 15% Return, %)	40.5	41.4	44.6	39.4	32.8
Average Effective Tax Rate on Skills (Return based on Labour Market Premium, %)	26.8	29.1	37.7	23.7	5.7
Government Costs and Returns
Government Educational Costs	256274	260839	273156	253381	246078
Marginal Returns to Costs Ratio	0.09	0.10	0.17	0.08	0.07
Average Returns to Costs Ratio (Return based on Labour Market Premium)	0.59	0.58	0.55	0.59	0.61
https://doi.org/10.1787/888933446846

Table C.14. Comparing Financial Incentives for Differing Savings-Financed Education Scenarios - Denmark
Single, No Children, Annual Data							Currency: DKK
Age	17	27	32	40	32	40	50	50
Income Before Education, %AW	70	100	100	100	100	100	100	100
Income During Education, %AW	25	25	25	25	95	95	25	25
Years of Education	4	1	1	1	0.05	0.05	1	1
Education is Job Related	No	No	No	No	Yes	Yes	No	Yes
Financial Costs of Up-Skilling
Direct Costs of Education	8917	8917	8917	8917	38285	38285	8917	8917
Pre-Tax Scholarship Income	48682	48682	48682	48682	0	0	48682	0
Income Before Education	270520	386457	386457	386457	386457	386457	386457	386457
Income During Education	145296	145296	145296	145296	385490	385490	145296	96614
Pre-Tax Foregone Earnings	125223	241160	241160	241160	966	966	241160	289842
AETR Before Education (%)	33.7	36.1	36.1	36.1	36.1	36.1	36.1	36.1
AETR During Education (Exclusive of Tax Expenditures) (%)	27.4	27.4	27.4	27.4	36.1	36.1	27.4	20.7
Value of Education Tax Credits % of Direct Costs	-4.7	-4.7	-4.7	-4.7	0.0	0.0	-4.7	0.0
AETR During Education (Inclusive of Tax Expenditures) (%)	26.1	26.1	26.1	26.1	36.1	36.1	26.1	20.7
METR on Foregone Earnings (%)	40.9	41.3	41.3	41.3	42.3	42.3	41.3	41.2
Total Costs of Education (Direct Costs & Foregone Earnings)	32376	99965	99965	99965	38842	38842	99965	179315
Financial Returns to Up-Skilling
Breakeven Earnings Level	282562	396245	396908	398500	390518	391136	402729	415645
AETR After Education (%)	34.0	36.2	36.2	36.3	36.1	36.1	36.3	36.5
Breakeven Earnings Increment	12042	9788	10451	12043	4061	4680	16272	29188
Breakeven Earnings Increment % of Previous Wage	4.5	2.5	2.7	3.1	1.1	1.2	4.2	7.6
METR Breakeven Earnings Increment (%)	40.9	42.3	42.3	42.3	42.3	42.3	42.3	42.3
Marginal Effective Tax Rate on Skills (%)	-56.0	-16.2	-16.2	-16.2	41.7	41.7	-16.2	3.9
Average Effective Tax Rate on Skills (Assumed 15% Return, %)	40.5	41.8	41.3	40.1	41.7	41.6	36.9	34.7
Government Costs and Returns
Government Educational Costs	256274	304621	304621	304621	154919	154919	304621	273954
Marginal Returns to Costs Ratio	0.09	0.24	0.24	0.24	0.18	0.18	0.24	0.48
Average Returns to Costs Ratio (Assumed 15% Return)	1.76	2.21	2.07	1.80	0.18	0.15	1.33	1.48
https://doi.org/10.1787/888933446850

Estonia

Table C.15. Comparing Financial Incentives for College Education with Different Financing Scenarios - Estonia
Single, No Children, 17 Year-Old, Four Years of Education, 70% of the Average Wage					Currency: EEK
Scenario	No Borrowing	Direct Costs Borrowed, Low Interest Rate	All Costs Borrowed, Low Interest Rate	Direct Costs Borrowed, High Interest Rate	All Costs Borrowed, High Interest Rate
Non-Financing Education Costs
Direct Costs of Education	645	645	645	645	645
Pre-Tax Scholarship Income	133	133	133	133	133
Income Before Education	7258	7258	7258	7258	7258
Income During Education	2725	2725	2725	2725	2725
Pre-Tax Foregone Earnings	4533	4533	4533	4533	4533
AETR Before Education (%)	15.4	15.4	15.4	15.4	15.4
AETR During Education (Exclusive of Tax Expenditures) (%)	7.1	7.1	7.1	7.1	7.1
Value of Education Tax Credits % of Direct Costs	31.8	31.8	31.8	31.8	31.8
AETR During Education (Inclusive of Tax Expenditures) (%)	1.1	1.1	1.1	1.1	1.1
METR on Foregone Earnings (%)	20.4	20.4	20.4	20.4	20.4
Total Annual Non-Financing Costs of Education (Direct Costs & Foregone Earnings)	3956	3956	3956	3956	3956
Education Financing Costs
Fraction of Costs Borrowed	None	Direct Costs	All Costs	Direct Costs	All Costs
Total Amount Borrowed	0	645	3956	645	3956
Interest Rate (%)	NA	0.0	0.0	6.0	6.0
Annual Repayments	0	55	336	219	1345
Debt Finance Multiplier	1.00	0.59	0.59	1.41	1.41
Returns to Education
Breakeven Earnings Level	8394	8319	7932	8470	8857
AETR After Education (%)	16.1	16.1	15.8	16.1	16.3
Breakeven Earnings Increment	1137	1062	675	1212	1599
Breakeven Earnings Increment % of Previous Wage	15.7	14.6	9.3	16.7	22.0
METR Breakeven Earnings Increment (%)	20.4	20.4	20.4	20.4	20.4
Marginal Effective Tax Rate on Skills (%)	-1.5	-3.0	-1.5	-0.1	-1.5
Average Effective Tax Rate on Skills (Assumed 15% Return, %)	16.1	17.4	22.7	14.7	3.0
Average Effective Tax Rate on Skills (Return based on Labour Market Premium, %)	12.4	14.7	24.6	9.8	-12.1
Government Costs and Returns
Government Educational Costs	4534	4796	6143	4272	2926
Marginal Returns to Costs Ratio	0.22	0.23	0.28	0.22	0.25
Average Returns to Costs Ratio (Return based on Labour Market Premium)	0.61	0.58	0.45	0.65	0.95
https://doi.org/10.1787/888933446864

Table C.16. Comparing Financial Incentives for Differing Savings-Financed Education Scenarios - Estonia
Single, No Children, Annual Data							Currency: EEK
Age	17	27	32	40	32	40	50	50
Income Before Education, %AW	70	100	100	100	100	100	100	100
Income During Education, %AW	25	25	25	25	95	95	25	25
Years of Education	4	1	1	1	0.05	0.05	1	1
Education is Job Related	No	No	No	No	Yes	Yes	No	Yes
Financial Costs of Up-Skilling
Direct Costs of Education	645	645	645	645	992	992	645	645
Pre-Tax Scholarship Income	133	133	133	133	0	0	133	0
Income Before Education	7258	10368	10368	10368	10368	10368	10368	10368
Income During Education	2725	2725	2725	2725	10342	10342	2725	2592
Pre-Tax Foregone Earnings	4533	7643	7643	7643	26	26	7643	7776
AETR Before Education (%)	15.4	16.9	16.9	16.9	16.9	16.9	16.9	16.9
AETR During Education (Exclusive of Tax Expenditures) (%)	7.1	7.1	7.1	7.1	16.9	16.9	7.1	6.4
Value of Education Tax Credits % of Direct Costs	31.8	31.8	31.8	31.8	21.0	21.0	31.8	21.0
AETR During Education (Inclusive of Tax Expenditures) (%)	1.1	1.1	1.1	1.1	14.9	14.9	1.1	1.2
METR on Foregone Earnings (%)	20.4	20.4	20.4	20.4	20.4	20.4	20.4	20.4
Total Costs of Education (Direct Costs & Foregone Earnings)	3956	6432	6432	6432	804	804	6432	6698
Financial Returns to Up-Skilling
Breakeven Earnings Level	8394	10849	10888	10987	10433	10445	11298	11336
AETR After Education (%)	16.1	17.1	17.1	17.1	16.9	16.9	17.2	17.2
Breakeven Earnings Increment	1137	481	520	619	65	77	930	968
Breakeven Earnings Increment % of Previous Wage	15.7	4.6	5.0	6.0	0.6	0.7	9.0	9.3
METR Breakeven Earnings Increment (%)	20.4	20.4	20.4	20.4	20.4	20.4	20.4	20.4
Marginal Effective Tax Rate on Skills (%)	-1.5	-0.9	-0.9	-0.9	-0.7	-0.7	-0.9	-0.1
Average Effective Tax Rate on Skills (Assumed 15% Return, %)	16.1	15.5	15.1	14.0	7.2	4.6	10.9	10.9
Government Costs and Returns
Government Educational Costs	4534	5169	5169	5169	3527	3527	5169	5036
Marginal Returns to Costs Ratio	0.22	0.32	0.32	0.32	0.06	0.06	0.32	0.34
Average Returns to Costs Ratio (Assumed 15% Return)	1.14	1.38	1.27	1.07	0.09	0.08	0.71	0.73
https://doi.org/10.1787/888933446876

Finland

Table C.17. Comparing Financial Incentives for College Education with Different Financing Scenarios1 - Finland
Single, No Children, 17 Year-Old, Four Years of Education, 70% of the Average Wage					Currency: EUR
Scenario	No Borrowing	Direct Costs Borrowed, Low Interest Rate	All Costs Borrowed, Low Interest Rate	Direct Costs Borrowed, High Interest Rate	All Costs Borrowed, High Interest Rate
Non-Financing Education Costs
Direct Costs of Education	672	672	672	672	672
Pre-Tax Scholarship Income	2500	2500	2500	2500	2500
Income Before Education	28170	28170	28170	28170	28170
Income During Education	12561	12561	12561	12561	12561
Pre-Tax Foregone Earnings	15609	15609	15609	15609	15609
AETR Before Education (%)	16.3	16.3	16.3	16.3	16.3
AETR During Education (Exclusive of Tax Expenditures) (%)	5.4	5.4	5.4	5.4	5.4
Value of Education Tax Credits % of Direct Costs	-17.3	-17.3	-17.3	-17.3	-17.3
AETR During Education (Inclusive of Tax Expenditures) (%)	2.8	2.8	2.8	2.8	2.8
METR on Foregone Earnings (%)	25.2	25.2	25.2	25.2	25.2
Total Annual Non-Financing Costs of Education (Direct Costs & Foregone Earnings)	9531	9531	9531	9531	9531
Education Financing Costs
Fraction of Costs Borrowed	None	Direct Costs	All Costs	Direct Costs	All Costs
Total Amount Borrowed	0	672	9531	672	9531
Interest Rate (%)	NA	0.0	0.0	6.0	6.0
Annual Repayments	0	57	810	229	3241
Debt Finance Multiplier	1.00	0.59	0.59	1.41	1.41
Returns to Education
Breakeven Earnings Level	31471	31375	30109	31567	32832
AETR After Education (%)	18.3	18.3	17.6	18.4	19.0
Breakeven Earnings Increment	3301	3205	1939	3397	4662
Breakeven Earnings Increment % of Previous Wage	11.7	11.4	6.9	12.1	16.6
METR Breakeven Earnings Increment (%)	35.3	35.3	35.3	35.3	35.3
Marginal Effective Tax Rate on Skills (%)	6.4	5.6	6.4	7.3	6.4
Average Effective Tax Rate on Skills (Assumed 15% Return, %)	33.6	34.0	38.7	33.2	23.9
Average Effective Tax Rate on Skills (Return based on Labour Market Premium, %)	29.7	30.3	37.7	29.0	14.1
Government Costs and Returns
Government Educational Costs	22406	22684	26338	22129	18474
Marginal Returns to Costs Ratio	0.23	0.24	0.34	0.23	0.20
Average Returns to Costs Ratio (Return based on Labour Market Premium)	1.02	1.01	0.87	1.04	1.24
← 1. These results do not incorporate interest deductibility of student loans in Finland.
https://doi.org/10.1787/888933446881

Table C.18. Comparing Financial Incentives for Differing Savings-Financed Education Scenarios - Finland
Single, No Children, Annual Data							Currency: EUR
Age	17	27	32	40	32	40	50	50
Income Before Education, %AW	70	100	100	100	100	100	100	100
Income During Education, %AW	25	25	25	25	95	95	25	25
Years of Education	4	1	1	1	0.05	0.05	1	1
Education is Job Related	No	No	No	No	Yes	Yes	No	Yes
Financial Costs of Up-Skilling
Direct Costs of Education	672	672	672	672	4144	4144	672	672
Pre-Tax Scholarship Income	2500	2500	2500	2500	0	0	2500	0
Income Before Education	28170	40243	40243	40243	40243	40243	40243	40243
Income During Education	12561	12561	12561	12561	40142	40142	12561	10061
Pre-Tax Foregone Earnings	15609	27682	27682	27682	101	101	27682	30182
AETR Before Education (%)	16.3	22.2	22.2	22.2	22.2	22.2	22.2	22.2
AETR During Education (Exclusive of Tax Expenditures) (%)	5.4	5.4	5.4	5.4	22.2	22.2	5.4	3.5
Value of Education Tax Credits % of Direct Costs	-17.3	-17.3	-17.3	-17.3	17.5	17.5	-17.3	0.0
AETR During Education (Inclusive of Tax Expenditures) (%)	2.8	2.8	2.8	2.8	20.4	20.4	2.8	3.5
METR on Foregone Earnings (%)	25.2	29.9	29.9	29.9	36.5	36.5	29.9	28.5
Total Costs of Education (Direct Costs & Foregone Earnings)	9531	17265	17265	17265	3483	3483	17265	22265
Financial Returns to Up-Skilling
Breakeven Earnings Level	31471	41873	41997	42302	40584	40642	43175	44037
AETR After Education (%)	18.3	22.9	22.9	23.0	22.3	22.4	23.4	23.7
Breakeven Earnings Increment	3301	1630	1754	2059	341	399	2932	3794
Breakeven Earnings Increment % of Previous Wage	11.7	4.1	4.4	5.1	0.8	1.0	7.3	9.4
METR Breakeven Earnings Increment (%)	35.3	38.7	38.8	39.0	36.5	36.5	39.4	39.6
Marginal Effective Tax Rate on Skills (%)	6.4	8.2	8.3	8.7	22.6	22.6	9.2	16.3
Average Effective Tax Rate on Skills (Assumed 15% Return, %)	33.6	33.7	33.3	32.2	24.7	22.7	28.9	28.9
Government Costs and Returns
Government Educational Costs	22406	26746	26746	26746	16418	16418	26746	24246
Marginal Returns to Costs Ratio	0.23	0.41	0.41	0.41	0.12	0.12	0.42	0.60
Average Returns to Costs Ratio (Assumed 15% Return)	1.70	2.08	1.93	1.65	0.14	0.12	1.17	1.29
https://doi.org/10.1787/888933446893

Greece

Table C.19. Comparing Financial Incentives for College Education with Different Financing Scenarios - Greece
Single, No Children, 17 Year-Old, Four Years of Education, 70% of the Average Wage					Currency: EUR
Scenario	No Borrowing	Direct Costs Borrowed, Low Interest Rate	All Costs Borrowed, Low Interest Rate	Direct Costs Borrowed, High Interest Rate	All Costs Borrowed, High Interest Rate
Non-Financing Education Costs
Direct Costs of Education	20	20	20	20	20
Pre-Tax Scholarship Income	6	6	6	6	6
Income Before Education	16374	16374	16374	16374	16374
Income During Education	5854	5854	5854	5854	5854
Pre-Tax Foregone Earnings	10519	10519	10519	10519	10519
AETR Before Education (%)	10.1	10.1	10.1	10.1	10.1
AETR During Education (Exclusive of Tax Expenditures) (%)	1.5	1.5	1.5	1.5	1.5
Value of Education Tax Credits % of Direct Costs	6.4	6.4	6.4	6.4	6.4
AETR During Education (Inclusive of Tax Expenditures) (%)	1.4	1.4	1.4	1.4	1.4
METR on Foregone Earnings (%)	14.9	14.9	14.9	14.9	14.9
Total Annual Non-Financing Costs of Education (Direct Costs & Foregone Earnings)	8967	8967	8967	8967	8967
Education Financing Costs
Fraction of Costs Borrowed	None	Direct Costs	All Costs	Direct Costs	All Costs
Total Amount Borrowed	0	20	8967	20	8967
Interest Rate (%)	NA	0.0	0.0	6.0	6.0
Annual Repayments	0	2	762	7	3049
Debt Finance Multiplier	1.00	0.60	0.60	1.40	1.40
Returns to Education
Breakeven Earnings Level	19233	19230	18099	19235	20367
AETR After Education (%)	12.4	12.4	11.6	12.4	13.2
Breakeven Earnings Increment	2859	2857	1725	2862	3993
Breakeven Earnings Increment % of Previous Wage	17.5	17.4	10.5	17.5	24.4
METR Breakeven Earnings Increment (%)	25.8	25.8	25.8	25.8	25.8
Marginal Effective Tax Rate on Skills (%)	12.9	12.9	12.9	12.9	12.9
Average Effective Tax Rate on Skills (Assumed 15% Return, %)	27.5	27.6	33.2	27.5	15.9
Average Effective Tax Rate on Skills (Return based on Labour Market Premium, %)	19.9	19.9	31.8	19.8	-4.7
Government Costs and Returns
Government Educational Costs	5682	5689	9238	5674	2125
Marginal Returns to Costs Ratio	0.55	0.55	0.56	0.55	1.05
Average Returns to Costs Ratio (Return based on Labour Market Premium)	1.19	1.19	0.73	1.20	3.19
https://doi.org/10.1787/888933446900

Table C.20. Comparing Financial Incentives for Differing Savings-Financed Education Scenarios - Greece
Single, No Children, Annual Data							Currency: EUR
Age	17	27	32	40	32	40	50	50
Income Before Education, %AW	70	100	100	100	100	100	100	100
Income During Education, %AW	25	25	25	25	95	95	25	25
Years of Education	4	1	1	1	0.05	0.05	1	1
Education is Job Related	No	No	No	No	Yes	Yes	No	Yes
Financial Costs of Up-Skilling
Direct Costs of Education	20	20	20	20	1573	1573	20	20
Pre-Tax Scholarship Income	6	6	6	6	0	0	6	0
Income Before Education	16374	23391	23391	23391	23391	23391	23391	23391
Income During Education	5854	5854	5854	5854	23333	23333	5854	5848
Pre-Tax Foregone Earnings	10519	17537	17537	17537	58	58	17537	17543
AETR Before Education (%)	10.1	14.8	14.8	14.8	14.8	14.8	14.8	14.8
AETR During Education (Exclusive of Tax Expenditures) (%)	1.5	1.5	1.5	1.5	14.8	14.8	1.5	1.5
Value of Education Tax Credits % of Direct Costs	6.4	6.4	6.4	6.4	2.5	2.5	6.4	1.0
AETR During Education (Inclusive of Tax Expenditures) (%)	1.4	1.4	1.4	1.4	14.6	14.6	1.4	1.4
METR on Foregone Earnings (%)	14.9	19.3	19.3	19.3	25.8	25.8	19.3	19.3
Total Costs of Education (Direct Costs & Foregone Earnings)	8967	14171	14171	14171	1577	1577	14171	14184
Financial Returns to Up-Skilling
Breakeven Earnings Level	19233	24860	24974	25279	23536	23569	26494	26497
AETR After Education (%)	12.4	16.3	16.3	16.5	14.9	14.9	17.1	17.1
Breakeven Earnings Increment	2859	1469	1583	1888	145	178	3103	3106
Breakeven Earnings Increment % of Previous Wage	17.5	6.3	6.8	8.1	0.6	0.8	13.3	13.3
METR Breakeven Earnings Increment (%)	25.8	40.0	39.1	37.1	25.8	25.8	34.6	34.6
Marginal Effective Tax Rate on Skills (%)	12.9	25.7	24.5	22.0	23.3	23.3	19.0	19.0
Average Effective Tax Rate on Skills (Assumed 15% Return, %)	27.5	30.8	30.4	29.2	24.3	23.9	24.9	24.9
Government Costs and Returns
Government Educational Costs	5682	7495	7495	7495	4163	4163	7495	7488
Marginal Returns to Costs Ratio	0.55	1.26	1.21	1.11	0.13	0.13	1.00	1.00
Average Returns to Costs Ratio (Assumed 15% Return)	2.96	3.54	3.24	2.63	0.21	0.17	1.54	1.54
https://doi.org/10.1787/888933446919

Hungary

Table C.21. Comparing Financial Incentives for College Education with Different Financing Scenarios - Hungary
Single, No Children, 17 Year-Old, Four Years of Education, 70% of the Average Wage					Currency: HUF
Scenario	No Borrowing	Direct Costs Borrowed, Low Interest Rate	All Costs Borrowed, Low Interest Rate	Direct Costs Borrowed, High Interest Rate	All Costs Borrowed, High Interest Rate
Non-Financing Education Costs
Direct Costs of Education	349237	349237	349237	349237	349237
Pre-Tax Scholarship Income	160703	160703	160703	160703	160703
Income Before Education	1851998	1851998	1851998	1851998	1851998
Income During Education	822131	822131	822131	822131	822131
Pre-Tax Foregone Earnings	1029868	1029868	1029868	1029868	1029868
AETR Before Education (%)	12.5	12.5	12.5	12.5	12.5
AETR During Education (Exclusive of Tax Expenditures) (%)	2.7	2.7	2.7	2.7	2.7
Value of Education Tax Credits % of Direct Costs	11.6	11.6	11.6	11.6	11.6
AETR During Education (Inclusive of Tax Expenditures) (%)	0.0	0.0	0.0	0.0	0.0
METR on Foregone Earnings (%)	20.3	20.3	20.3	20.3	20.3
Total Annual Non-Financing Costs of Education (Direct Costs & Foregone Earnings)	987276	987276	987276	987276	987276
Education Financing Costs
Fraction of Costs Borrowed	None	Direct Costs	All Costs	Direct Costs	All Costs
Total Amount Borrowed	0	349237	987276	349237	987276
Interest Rate (%)	NA	0.0	0.0	6.0	6.0
Annual Repayments	0	29684	83916	118738	335666
Debt Finance Multiplier	1.00	0.59	0.59	1.41	1.41
Returns to Education
Breakeven Earnings Level	2129652	2089137	2015120	2171304	2262827
AETR After Education (%)	13.5	13.4	13.1	13.7	14.6
Breakeven Earnings Increment	277653	237139	163121	319306	410828
Breakeven Earnings Increment % of Previous Wage	15.0	12.8	8.8	17.2	22.2
METR Breakeven Earnings Increment (%)	20.3	20.3	20.3	20.6	23.9
Marginal Effective Tax Rate on Skills (%)	1.7	-1.5	1.7	4.4	6.1
Average Effective Tax Rate on Skills (Assumed 15% Return, %)	26.6	29.0	32.5	23.6	14.4
Average Effective Tax Rate on Skills (Return based on Labour Market Premium, %)	24.8	26.5	29.1	22.7	16.1
Government Costs and Returns
Government Educational Costs	1490241	1634302	1897493	1346181	1082990
Marginal Returns to Costs Ratio	0.17	0.18	0.23	0.17	0.20
Average Returns to Costs Ratio (Return based on Labour Market Premium)	1.69	1.54	1.33	1.87	2.33
https://doi.org/10.1787/888933446922

Table C.22. Comparing Financial Incentives for Differing Savings-Financed Education Scenarios - Hungary
Single, No Children, Annual Data							Currency: HUF
Age	17	27	32	40	32	40	50	50
Income Before Education, %AW	70	100	100	100	100	100	100	100
Income During Education, %AW	25	25	25	25	95	95	25	25
Years of Education	4	1	1	1	0.05	0.05	1	1
Education is Job Related	No	No	No	No	Yes	Yes	No	Yes
Financial Costs of Up-Skilling
Direct Costs of Education	349237	349237	349237	349237	262409	262409	349237	349237
Pre-Tax Scholarship Income	160703	160703	160703	160703	0	0	160703	0
Income Before Education	1851998	2645712	2645712	2645712	2645712	2645712	2645712	2645712
Income During Education	822131	822131	822131	822131	2639098	2639098	822131	661428
Pre-Tax Foregone Earnings	1029868	1823581	1823581	1823581	6614	6614	1823581	1984284
AETR Before Education (%)	12.5	17.6	17.6	17.6	17.6	17.6	17.6	17.6
AETR During Education (Exclusive of Tax Expenditures) (%)	2.7	2.7	2.7	2.7	17.6	17.6	2.7	0.0
Value of Education Tax Credits % of Direct Costs	11.6	11.6	11.6	11.6	0.0	0.0	11.6	0.0
AETR During Education (Inclusive of Tax Expenditures) (%)	0.0	0.0	0.0	0.0	17.6	17.6	0.0	0.0
METR on Foregone Earnings (%)	20.3	24.3	24.3	24.3	35.6	35.6	24.3	23.5
Total Costs of Education (Direct Costs & Foregone Earnings)	987276	1546501	1546501	1546501	266671	266671	1546501	1867906
Financial Returns to Up-Skilling
Breakeven Earnings Level	2129652	2784645	2794934	2820311	2671443	2675819	2892819	2944175
AETR After Education (%)	13.5	18.5	18.6	18.7	17.8	17.8	19.1	19.4
Breakeven Earnings Increment	277653	138933	149222	174599	25731	30107	247107	298463
Breakeven Earnings Increment % of Previous Wage	15.0	5.3	5.6	6.6	1.0	1.1	9.3	11.3
METR Breakeven Earnings Increment (%)	20.3	35.6	35.6	35.6	35.6	35.6	35.6	35.6
Marginal Effective Tax Rate on Skills (%)	1.7	16.2	16.2	16.2	35.0	35.0	16.2	19.5
Average Effective Tax Rate on Skills (Assumed 15% Return, %)	26.6	28.8	28.5	27.5	35.0	34.9	24.9	24.9
Government Costs and Returns
Government Educational Costs	1490241	1724730	1724730	1724730	1100765	1100765	1724730	1564028
Marginal Returns to Costs Ratio	0.17	0.49	0.49	0.49	0.13	0.13	0.49	0.66
Average Returns to Costs Ratio (Assumed 15% Return)	1.34	1.80	1.67	1.43	0.14	0.12	1.01	1.11
https://doi.org/10.1787/888933446931

Iceland

Table C.23. Comparing Financial Incentives for College Education with Different Financing Scenarios - Iceland
Single, No Children, 17 Year-Old, Four Years of Education, 70% of the Average Wage					Currency: ISJ
Scenario	No Borrowing	Direct Costs Borrowed, Low Interest Rate	All Costs Borrowed, Low Interest Rate	Direct Costs Borrowed, High Interest Rate	All Costs Borrowed, High Interest Rate
Non-Financing Education Costs
Direct Costs of Education	100495	100495	100495	100495	100495
Pre-Tax Scholarship Income	0	0	0	0	0
Income Before Education	3939600	3939600	3939600	3939600	3939600
Income During Education	1407000	1407000	1407000	1407000	1407000
Pre-Tax Foregone Earnings	2532600	2532600	2532600	2532600	2532600
AETR Before Education (%)	23.3	23.3	23.3	23.3	23.3
AETR During Education (Exclusive of Tax Expenditures) (%)	0.0	0.0	0.0	0.0	0.0
Value of Education Tax Credits % of Direct Costs	0.0	0.0	0.0	0.0	0.0
AETR During Education (Inclusive of Tax Expenditures) (%)	0.0	0.0	0.0	0.0	0.0
METR on Foregone Earnings (%)	36.2	36.2	36.2	36.2	36.2
Total Annual Non-Financing Costs of Education (Direct Costs & Foregone Earnings)	1715684	1715684	1715684	1715684	1715684
Education Financing Costs
Fraction of Costs Borrowed	None	Direct Costs	All Costs	Direct Costs	All Costs
Total Amount Borrowed	0	100495	1715684	100495	1715684
Interest Rate (%)	NA	0.0	0.0	6.0	6.0
Annual Repayments	0	8542	145830	34167	583318
Debt Finance Multiplier	1.00	0.58	0.58	1.42	1.42
Returns to Education
Breakeven Earnings Level	4554037	4538987	4297091	4569088	4810984
AETR After Education (%)	25.4	25.3	24.6	25.4	26.1
Breakeven Earnings Increment	614437	599387	357491	629488	871384
Breakeven Earnings Increment % of Previous Wage	15.6	15.2	9.1	16.0	22.1
METR Breakeven Earnings Increment (%)	38.6	38.6	38.6	38.6	38.6
Marginal Effective Tax Rate on Skills (%)	5.8	4.9	5.8	6.6	5.8
Average Effective Tax Rate on Skills (Assumed 15% Return, %)	32.2	32.6	39.3	31.7	18.6
Average Effective Tax Rate on Skills (Return based on Labour Market Premium, %)	27.4	28.1	39.9	26.6	3.5
Government Costs and Returns
Government Educational Costs	1959509	2001534	2676976	1917484	1242041
Marginal Returns to Costs Ratio	0.55	0.55	0.69	0.55	0.61
Average Returns to Costs Ratio (Return based on Labour Market Premium)	1.61	1.57	1.18	1.64	2.54
https://doi.org/10.1787/888933446943

Table C.24. Comparing Financial Incentives for Differing Savings-Financed Education Scenarios - Iceland
Single, No Children, Annual Data							Currency: ISJ
Age	17	27	32	40	32	40	50	50
Income Before Education, %AW	70	100	100	100	100	100	100	100
Income During Education, %AW	25	25	25	25	95	95	25	25
Years of Education	4	1	1	1	0.05	0.05	1	1
Education is Job Related	No	No	No	No	Yes	Yes	No	Yes
Financial Costs of Up-Skilling
Direct Costs of Education	100495	100495	100495	100495	557721	557721	100495	100495
Pre-Tax Scholarship Income	0	0	0	0	0	0	0	0
Income Before Education	3939600	5628000	5628000	5628000	5628000	5628000	5628000	5628000
Income During Education	1407000	1407000	1407000	1407000	5613930	5613930	1407000	1407000
Pre-Tax Foregone Earnings	2532600	4221000	4221000	4221000	14070	14070	4221000	4221000
AETR Before Education (%)	23.3	27.9	27.9	27.9	27.9	27.9	27.9	27.9
AETR During Education (Exclusive of Tax Expenditures) (%)	0.0	0.0	0.0	0.0	27.9	27.9	0.0	0.0
Value of Education Tax Credits % of Direct Costs	0.0	0.0	0.0	0.0	40.2	40.2	0.0	0.0
AETR During Education (Inclusive of Tax Expenditures) (%)	0.0	0.0	0.0	0.0	23.9	23.9	0.0	0.0
METR on Foregone Earnings (%)	36.2	37.2	37.2	37.2	38.6	38.6	37.2	37.2
Total Costs of Education (Direct Costs & Foregone Earnings)	1715684	2752334	2752334	2752334	342100	342100	2752334	2752334
Financial Returns to Up-Skilling
Breakeven Earnings Level	4554037	5881204	5898363	5939545	5661605	5666723	6048936	6048936
AETR After Education (%)	25.4	28.3	28.4	28.4	27.9	28.0	28.6	28.6
Breakeven Earnings Increment	614437	253204	270363	311545	33605	38723	420936	420936
Breakeven Earnings Increment % of Previous Wage	15.6	4.5	4.8	5.5	0.6	0.7	7.5	7.5
METR Breakeven Earnings Increment (%)	38.6	38.6	38.6	38.6	38.6	38.6	38.6	38.6
Marginal Effective Tax Rate on Skills (%)	5.8	3.6	3.6	3.6	-2.6	-2.6	3.6	3.6
Average Effective Tax Rate on Skills (Assumed 15% Return, %)	32.2	30.7	30.2	28.9	14.0	10.2	25.5	25.5
Government Costs and Returns
Government Educational Costs	1959509	2611258	2611258	2611258	1271788	1271788	2611258	2611258
Marginal Returns to Costs Ratio	0.55	0.66	0.66	0.66	0.17	0.17	0.66	0.66
Average Returns to Costs Ratio (Assumed 15% Return)	2.82	2.95	2.76	2.39	0.28	0.25	1.77	1.77
https://doi.org/10.1787/888933446956

Ireland

Table C.25. Comparing Financial Incentives for College Education with Different Financing Scenarios - Ireland
Single, No Children, 17 Year-Old, Four Years of Education, 70% of the Average Wage					Currency: EUR
Scenario	No Borrowing	Direct Costs Borrowed, Low Interest Rate	All Costs Borrowed, Low Interest Rate	Direct Costs Borrowed, High Interest Rate	All Costs Borrowed, High Interest Rate
Non-Financing Education Costs
Direct Costs of Education	2213	2213	2213	2213	2213
Pre-Tax Scholarship Income	1600	1600	1600	1600	1600
Income Before Education	22585	22585	22585	22585	22585
Income During Education	9666	9666	9666	9666	9666
Pre-Tax Foregone Earnings	12919	12919	12919	12919	12919
AETR Before Education (%)	9.4	9.4	9.4	9.4	9.4
AETR During Education (Exclusive of Tax Expenditures) (%)	2.0	2.0	2.0	2.0	2.0
Value of Education Tax Credits % of Direct Costs	5.2	5.2	5.2	5.2	5.2
AETR During Education (Inclusive of Tax Expenditures) (%)	1.7	1.7	1.7	1.7	1.7
METR on Foregone Earnings (%)	14.9	14.9	14.9	14.9	14.9
Total Annual Non-Financing Costs of Education (Direct Costs & Foregone Earnings)	11577	11577	11577	11577	11577
Education Financing Costs
Fraction of Costs Borrowed	None	Direct Costs	All Costs	Direct Costs	All Costs
Total Amount Borrowed	0	2213	11577	2213	11577
Interest Rate (%)	NA	0.0	0.0	6.0	6.0
Annual Repayments	0	188	984	752	3936
Debt Finance Multiplier	1.00	0.59	0.59	1.41	1.41
Returns to Education
Breakeven Earnings Level	26139	25858	24673	26419	27605
AETR After Education (%)	11.8	11.6	10.9	11.9	12.6
Breakeven Earnings Increment	3554	3274	2088	3834	5020
Breakeven Earnings Increment % of Previous Wage	15.7	14.5	9.2	17.0	22.2
METR Breakeven Earnings Increment (%)	27.0	27.0	27.0	27.0	27.0
Marginal Effective Tax Rate on Skills (%)	14.7	13.6	14.7	15.6	14.7
Average Effective Tax Rate on Skills (Assumed 15% Return, %)	33.7	34.9	38.8	32.3	22.9
Average Effective Tax Rate on Skills (Return based on Labour Market Premium, %)	20.5	23.8	34.1	16.7	-8.3
Government Costs and Returns
Government Educational Costs	14270	15183	19046	13357	9495
Marginal Returns to Costs Ratio	0.30	0.31	0.38	0.30	0.32
Average Returns to Costs Ratio (Return based on Labour Market Premium)	0.57	0.54	0.43	0.61	0.86
https://doi.org/10.1787/888933446961

Table C.26. Comparing Financial Incentives for Differing Savings-Financed Education Scenarios - Ireland
Single, No Children, Annual Data							Currency: EUR
Age	17	27	32	40	32	40	50	50
Income Before Education, %AW	70	100	100	100	100	100	100	100
Income During Education, %AW	25	25	25	25	95	95	25	25
Years of Education	4	1	1	1	0.05	0.05	1	1
Education is Job Related	No	No	No	No	Yes	Yes	No	Yes
Financial Costs of Up-Skilling
Direct Costs of Education	2213	2213	2213	2213	3284	3284	2213	2213
Pre-Tax Scholarship Income	1600	1600	1600	1600	0	0	1600	0
Income Before Education	22585	32264	32264	32264	32264	32264	32264	32264
Income During Education	9666	9666	9666	9666	32183	32183	9666	8066
Pre-Tax Foregone Earnings	12919	22598	22598	22598	81	81	22598	24198
AETR Before Education (%)	9.4	14.7	14.7	14.7	14.7	14.7	14.7	14.7
AETR During Education (Exclusive of Tax Expenditures) (%)	2.0	2.0	2.0	2.0	14.6	14.6	2.0	2.0
Value of Education Tax Credits % of Direct Costs	5.2	5.2	5.2	5.2	7.8	7.8	5.2	0.0
AETR During Education (Inclusive of Tax Expenditures) (%)	1.7	1.7	1.7	1.7	13.8	13.8	1.7	2.0
METR on Foregone Earnings (%)	14.9	20.1	20.1	20.1	27.0	27.0	20.1	18.9
Total Costs of Education (Direct Costs & Foregone Earnings)	11577	18643	18643	18643	3086	3086	18643	21842
Financial Returns to Up-Skilling
Breakeven Earnings Level	26139	34123	34277	34656	32527	32572	35739	36373
AETR After Education (%)	11.8	16.1	16.3	16.6	14.8	14.8	17.6	18.1
Breakeven Earnings Increment	3554	1859	2013	2392	263	308	3475	4109
Breakeven Earnings Increment % of Previous Wage	15.7	5.8	6.2	7.4	0.8	1.0	10.8	12.7
METR Breakeven Earnings Increment (%)	27.0	41.9	42.4	43.3	27.0	27.0	44.8	45.3
Marginal Effective Tax Rate on Skills (%)	14.7	27.7	28.3	29.4	20.4	20.4	31.2	33.8
Average Effective Tax Rate on Skills (Assumed 15% Return, %)	33.7	42.2	41.9	41.1	21.6	20.7	39.0	39.0
Government Costs and Returns
Government Educational Costs	14270	16883	16883	16883	10994	10994	16883	15284
Marginal Returns to Costs Ratio	0.30	0.80	0.81	0.84	0.10	0.10	0.89	1.18
Average Returns to Costs Ratio (Assumed 15% Return)	2.04	3.05	2.84	2.43	0.13	0.11	1.72	1.90
https://doi.org/10.1787/888933446974

Israel

Table C.27. Comparing Financial Incentives for College Education with Different Financing Scenarios - Israel
Single, No Children, 17 Year-Old, Four Years of Education, 70% of the Average Wage					Currency: ILS
Scenario	No Borrowing	Direct Costs Borrowed, Low Interest Rate	All Costs Borrowed, Low Interest Rate	Direct Costs Borrowed, High Interest Rate	All Costs Borrowed, High Interest Rate
Non-Financing Education Costs
Direct Costs of Education	14096	14096	14096	14096	14096
Pre-Tax Scholarship Income	2500	2500	2500	2500	2500
Income Before Education	87784	87784	87784	87784	87784
Income During Education	33851	33851	33851	33851	33851
Pre-Tax Foregone Earnings	53933	53933	53933	53933	53933
AETR Before Education (%)	4.8	4.8	4.8	4.8	4.8
AETR During Education (Exclusive of Tax Expenditures) (%)	0.0	0.0	0.0	0.0	0.0
Value of Education Tax Credits % of Direct Costs	0.0	0.0	0.0	0.0	0.0
AETR During Education (Inclusive of Tax Expenditures) (%)	0.0	0.0	0.0	0.0	0.0
METR on Foregone Earnings (%)	7.8	7.8	7.8	7.8	7.8
Total Annual Non-Financing Costs of Education (Direct Costs & Foregone Earnings)	61316	61316	61316	61316	61316
Education Financing Costs
Fraction of Costs Borrowed	None	Direct Costs	All Costs	Direct Costs	All Costs
Total Amount Borrowed	0	14096	61316	14096	61316
Interest Rate (%)	NA	0.0	0.0	6.0	6.0
Annual Repayments	0	1198	5212	4793	20847
Debt Finance Multiplier	1.00	0.58	0.58	1.42	1.42
Returns to Education
Breakeven Earnings Level	103461	101954	96905	105090	110729
AETR After Education (%)	6.2	6.1	5.7	6.4	7.3
Breakeven Earnings Increment	15677	14170	9121	17307	22946
Breakeven Earnings Increment % of Previous Wage	17.9	16.1	10.4	19.7	26.1
METR Breakeven Earnings Increment (%)	14.0	14.0	14.0	14.6	16.7
Marginal Effective Tax Rate on Skills (%)	8.1	7.5	8.1	9.3	10.9
Average Effective Tax Rate on Skills (Assumed 15% Return, %)	19.6	21.4	25.2	17.5	6.9
Average Effective Tax Rate on Skills (Return based on Labour Market Premium, %)	18.1	20.7	26.1	15.0	-0.3
Government Costs and Returns
Government Educational Costs	29046	34940	54687	23151	3404
Marginal Returns to Costs Ratio	0.34	0.32	0.31	0.41	2.54
Average Returns to Costs Ratio (Return based on Labour Market Premium)	1.52	1.26	0.81	1.90	12.95
Note: The statistical data for Israel are supplied by and under the responsibility of the relevant Israeli authorities. The use of such data by the OECD is without prejudice to the status of the Golan Heights, East Jerusalem and Israeli settlements in the West Bank under the terms of international law.
https://doi.org/10.1787/888933446988

Table C.28. Comparing Financial Incentives for Differing Savings-Financed Education Scenarios - Israel
Single, No Children, Annual Data							Currency: ILS
Age	17	27	32	40	32	40	50	50
Income Before Education, %AW	70	100	100	100	100	100	100	100
Income During Education, %AW	25	25	25	25	95	95	25	25
Years of Education	4	1	1	1	0.05	0.05	1	1
Education is Job Related	No	No	No	No	Yes	Yes	No	Yes
Financial Costs of Up-Skilling
Direct Costs of Education	14096	14096	14096	14096	11902	11902	14096	14096
Pre-Tax Scholarship Income	2500	2500	2500	2500	0	0	2500	0
Income Before Education	87784	125405	125405	125405	125405	125405	125405	125405
Income During Education	33851	33851	33851	33851	125091	125091	33851	31351
Pre-Tax Foregone Earnings	53933	91554	91554	91554	314	314	91554	94054
AETR Before Education (%)	4.8	9.1	9.1	9.1	9.1	9.1	9.1	9.1
AETR During Education (Exclusive of Tax Expenditures) (%)	0.0	0.0	0.0	0.0	9.1	9.1	0.0	0.0
Value of Education Tax Credits % of Direct Costs	0.0	0.0	0.0	0.0	23.0	23.0	0.0	0.0
AETR During Education (Inclusive of Tax Expenditures) (%)	0.0	0.0	0.0	0.0	6.9	6.9	0.0	0.0
METR on Foregone Earnings (%)	7.8	12.5	12.5	12.5	23.0	23.0	12.5	12.1
Total Costs of Education (Direct Costs & Foregone Earnings)	61316	91737	91737	91737	9406	9406	91737	96736
Financial Returns to Up-Skilling
Breakeven Earnings Level	103461	132134	132590	133685	126142	126254	136592	137202
AETR After Education (%)	6.2	9.8	9.9	10.0	9.2	9.2	10.2	10.3
Breakeven Earnings Increment	15677	6729	7185	8280	737	849	11187	11797
Breakeven Earnings Increment % of Previous Wage	17.9	5.4	5.7	6.6	0.6	0.7	8.9	9.4
METR Breakeven Earnings Increment (%)	14.0	23.0	23.0	23.0	23.0	23.0	23.0	23.0
Marginal Effective Tax Rate on Skills (%)	8.1	13.4	13.4	13.4	0.0	0.0	13.4	13.9
Average Effective Tax Rate on Skills (Assumed 15% Return, %)	19.6	20.4	20.3	19.8	9.5	7.4	18.7	18.7
Government Costs and Returns
Government Educational Costs	29046	36246	36246	36246	25142	25142	36246	33747
Marginal Returns to Costs Ratio	0.34	0.76	0.76	0.76	0.11	0.11	0.76	0.86
Average Returns to Costs Ratio (Assumed 15% Return)	2.30	2.82	2.64	2.29	0.19	0.17	1.69	1.82
Note: The statistical data for Israel are supplied by and under the responsibility of the relevant Israeli authorities. The use of such data by the OECD is without prejudice to the status of the Golan Heights, East Jerusalem and Israeli settlements in the West Bank under the terms of international law.
https://doi.org/10.1787/888933446993

Italy

Table C.29. Comparing Financial Incentives for College Education with Different Financing Scenarios - Italy
Single, No Children, 17 Year-Old, Four Years of Education, 70% of the Average Wage					Currency: EUR
Scenario	No Borrowing	Direct Costs Borrowed, Low Interest Rate	All Costs Borrowed, Low Interest Rate	Direct Costs Borrowed, High Interest Rate	All Costs Borrowed, High Interest Rate
Non-Financing Education Costs
Direct Costs of Education	1943	1943	1943	1943	1943
Pre-Tax Scholarship Income	1415	1415	1415	1415	1415
Income Before Education	20210	20210	20210	20210	20210
Income During Education	8633	8633	8633	8633	8633
Pre-Tax Foregone Earnings	11577	11577	11577	11577	11577
AETR Before Education (%)	17.7	17.7	17.7	17.7	17.7
AETR During Education (Exclusive of Tax Expenditures) (%)	0.0	0.0	0.0	0.0	0.0
Value of Education Tax Credits % of Direct Costs	0.0	0.0	0.0	0.0	0.0
AETR During Education (Inclusive of Tax Expenditures) (%)	0.0	0.0	0.0	0.0	0.0
METR on Foregone Earnings (%)	31.0	31.0	31.0	31.0	31.0
Total Annual Non-Financing Costs of Education (Direct Costs & Foregone Earnings)	8518	8518	8518	8518	8518
Education Financing Costs
Fraction of Costs Borrowed	None	Direct Costs	All Costs	Direct Costs	All Costs
Total Amount Borrowed	0	1943	8518	1943	8518
Interest Rate (%)	NA	0.0	0.0	6.0	6.0
Annual Repayments	0	165	724	661	2896
Debt Finance Multiplier	1.00	0.59	0.59	1.41	1.41
Returns to Education
Breakeven Earnings Level	22930	22674	21808	23186	24052
AETR After Education (%)	19.2	19.1	18.6	19.3	19.7
Breakeven Earnings Increment	2720	2464	1598	2976	3842
Breakeven Earnings Increment % of Previous Wage	13.5	12.2	7.9	14.7	19.0
METR Breakeven Earnings Increment (%)	29.8	29.8	29.8	29.8	29.8
Marginal Effective Tax Rate on Skills (%)	0.3	-2.8	0.3	2.8	0.3
Average Effective Tax Rate on Skills (Assumed 15% Return, %)	28.2	29.7	34.3	26.5	16.4
Average Effective Tax Rate on Skills (Return based on Labour Market Premium, %)	23.5	25.6	32.1	21.1	6.9
Government Costs and Returns
Government Educational Costs	10105	10906	13619	9304	6591
Marginal Returns to Costs Ratio	0.36	0.37	0.45	0.36	0.39
Average Returns to Costs Ratio (Return based on Labour Market Premium)	1.55	1.43	1.15	1.68	2.37
https://doi.org/10.1787/888933447009

Table C.30. Comparing Financial Incentives for Differing Savings-Financed Education Scenarios - Italy
Single, No Children, Annual Data							Currency: EUR
Age	17	27	32	40	32	40	50	50
Income Before Education, %AW	70	100	100	100	100	100	100	100
Income During Education, %AW	25	25	25	25	95	95	25	25
Years of Education	4	1	1	1	0.05	0.05	1	1
Education is Job Related	No	No	No	No	Yes	Yes	No	Yes
Financial Costs of Up-Skilling
Direct Costs of Education	1943	1943	1943	1943	2903	2903	1943	1943
Pre-Tax Scholarship Income	1415	1415	1415	1415	0	0	1415	0
Income Before Education	20210	28872	28872	28872	28872	28872	28872	28872
Income During Education	8633	8633	8633	8633	28800	28800	8633	7218
Pre-Tax Foregone Earnings	11577	20239	20239	20239	72	72	20239	21654
AETR Before Education (%)	17.7	21.3	21.3	21.3	21.3	21.3	21.3	21.3
AETR During Education (Exclusive of Tax Expenditures) (%)	0.0	0.0	0.0	0.0	21.2	21.2	0.0	0.0
Value of Education Tax Credits % of Direct Costs	0.0	0.0	0.0	0.0	19.0	19.0	0.0	0.0
AETR During Education (Inclusive of Tax Expenditures) (%)	0.0	0.0	0.0	0.0	19.3	19.3	0.0	0.0
METR on Foregone Earnings (%)	31.0	30.3	30.3	30.3	29.9	29.9	30.3	28.4
Total Costs of Education (Direct Costs & Foregone Earnings)	8518	14626	14626	14626	2402	2402	14626	17456
Financial Returns to Up-Skilling
Breakeven Earnings Level	22930	30080	30169	30390	29085	29121	31079	31563
AETR After Education (%)	19.2	21.6	21.6	21.7	21.3	21.3	22.0	22.3
Breakeven Earnings Increment	2720	1208	1297	1518	213	249	2207	2691
Breakeven Earnings Increment % of Previous Wage	13.5	4.2	4.5	5.3	0.7	0.9	7.6	9.3
METR Breakeven Earnings Increment (%)	29.8	29.9	29.9	29.9	29.9	29.9	31.8	33.2
Marginal Effective Tax Rate on Skills (%)	0.3	0.5	0.5	0.5	13.2	13.2	3.1	9.7
Average Effective Tax Rate on Skills (Assumed 15% Return, %)	28.2	30.6	30.1	29.0	17.6	15.5	25.8	25.8
Government Costs and Returns
Government Educational Costs	10105	12659	12659	12659	5676	5676	12659	11244
Marginal Returns to Costs Ratio	0.36	0.49	0.49	0.49	0.18	0.18	0.54	0.77
Average Returns to Costs Ratio (Assumed 15% Return)	2.37	2.89	2.69	2.30	0.24	0.21	1.63	1.83
https://doi.org/10.1787/888933447010

Luxembourg

Table C.31. Comparing Financial Incentives for College Education with Different Financing Scenarios - Luxembourg
Single, No Children, 17 Year-Old, Four Years of Education, 70% of the Average Wage					Currency: EUR
Scenario	No Borrowing	Direct Costs Borrowed, Low Interest Rate	All Costs Borrowed, Low Interest Rate	Direct Costs Borrowed, High Interest Rate	All Costs Borrowed, High Interest Rate
Non-Financing Education Costs
Direct Costs of Education	680	680	680	680	680
Pre-Tax Scholarship Income	2050	2050	2050	2050	2050
Income Before Education	35472	35472	35472	35472	35472
Income During Education	14719	14719	14719	14719	14719
Pre-Tax Foregone Earnings	20753	20753	20753	20753	20753
AETR Before Education (%)	8.5	8.5	8.5	8.5	8.5
AETR During Education (Exclusive of Tax Expenditures) (%)	0.0	0.0	0.0	0.0	0.0
Value of Education Tax Credits % of Direct Costs	0.0	0.0	0.0	0.0	0.0
AETR During Education (Inclusive of Tax Expenditures) (%)	0.0	0.0	0.0	0.0	0.0
METR on Foregone Earnings (%)	14.5	14.5	14.5	14.5	14.5
Total Annual Non-Financing Costs of Education (Direct Costs & Foregone Earnings)	16377	16377	16377	16377	16377
Education Financing Costs
Fraction of Costs Borrowed	None	Direct Costs	All Costs	Direct Costs	All Costs
Total Amount Borrowed	0	680	16377	680	16377
Interest Rate (%)	NA	0.0	0.0	6.0	6.0
Annual Repayments	0	58	1392	231	5568
Debt Finance Multiplier	1.00	0.60	0.60	1.40	1.40
Returns to Education
Breakeven Earnings Level	40791	40694	38648	40871	42991
AETR After Education (%)	10.9	10.9	10.0	10.9	11.9
Breakeven Earnings Increment	5319	5222	3176	5399	7519
Breakeven Earnings Increment % of Previous Wage	15.0	14.7	9.0	15.2	21.2
METR Breakeven Earnings Increment (%)	27.2	27.1	26.4	27.1	28.1
Marginal Effective Tax Rate on Skills (%)	13.8	13.4	12.9	13.9	14.9
Average Effective Tax Rate on Skills (Assumed 15% Return, %)	31.0	31.2	35.8	30.7	21.0
Average Effective Tax Rate on Skills (Return based on Labour Market Premium, %)	30.8	31.0	35.8	30.5	20.4
Government Costs and Returns
Government Educational Costs	17640	17910	24135	17370	11145
Marginal Returns to Costs Ratio	0.35	0.34	0.40	0.34	0.41
Average Returns to Costs Ratio (Return based on Labour Market Premium)	2.18	2.15	1.60	2.22	3.46
https://doi.org/10.1787/888933447028

Table C.32. Comparing Financial Incentives for Differing Savings-Financed Education Scenarios - Luxembourg
Single, No Children, Annual Data							Currency: EUR
Age	17	27	32	40	32	40	50	50
Income Before Education, %AW	70	100	100	100	100	100	100	100
Income During Education, %AW	25	25	25	25	95	95	25	25
Years of Education	4	1	1	1	0.05	0.05	1	1
Education is Job Related	No	No	No	No	Yes	Yes	No	Yes
Financial Costs of Up-Skilling
Direct Costs of Education	680	680	680	680	4989	4989	680	680
Pre-Tax Scholarship Income	2050	2050	2050	2050	0	0	2050	0
Income Before Education	35472	50674	50674	50674	50674	50674	50674	50674
Income During Education	14719	14719	14719	14719	50548	50548	14719	12669
Pre-Tax Foregone Earnings	20753	35956	35956	35956	127	127	35956	38006
AETR Before Education (%)	8.5	15.3	15.3	15.3	15.3	15.3	15.3	15.3
AETR During Education (Exclusive of Tax Expenditures) (%)	0.0	0.0	0.0	0.0	15.2	15.2	0.0	0.0
Value of Education Tax Credits % of Direct Costs	0.0	0.0	0.0	0.0	39.0	39.0	0.0	0.0
AETR During Education (Inclusive of Tax Expenditures) (%)	0.0	0.0	0.0	0.0	11.4	11.4	0.0	0.0
METR on Foregone Earnings (%)	14.5	21.6	21.6	21.6	48.0	48.0	21.6	20.4
Total Costs of Education (Direct Costs & Foregone Earnings)	16377	26830	26830	26830	3109	3109	26830	30931
Financial Returns to Up-Skilling
Breakeven Earnings Level	40791	53275	53514	54182	51008	51077	56688	57578
AETR After Education (%)	10.9	16.3	16.4	16.6	15.4	15.5	17.5	17.8
Breakeven Earnings Increment	5319	2601	2840	3508	333	403	6013	6904
Breakeven Earnings Increment % of Previous Wage	15.0	5.1	5.6	6.9	0.7	0.8	11.9	13.6
METR Breakeven Earnings Increment (%)	27.2	35.9	35.7	35.8	36.5	35.3	36.1	36.1
Marginal Effective Tax Rate on Skills (%)	13.8	17.3	17.1	17.3	-4.5	-6.6	17.6	19.7
Average Effective Tax Rate on Skills (Assumed 15% Return, %)	31.0	31.3	30.8	29.6	9.1	2.8	25.1	25.1
Government Costs and Returns
Government Educational Costs	17640	22388	22388	22388	14590	14590	22388	20338
Marginal Returns to Costs Ratio	0.35	0.67	0.67	0.67	0.12	0.12	0.68	0.86
Average Returns to Costs Ratio (Assumed 15% Return)	2.28	2.62	2.40	1.94	0.18	0.15	1.14	1.25
https://doi.org/10.1787/888933447038

Mexico

Table C.33. Comparing Financial Incentives for College Education with Different Financing Scenarios - Mexico
Single, No Children, 17 Year-Old, Four Years of Education, 70% of the Average Wage					Currency: MXN
Scenario	No Borrowing	Direct Costs Borrowed, Low Interest Rate	All Costs Borrowed, Low Interest Rate	Direct Costs Borrowed, High Interest Rate	All Costs Borrowed, High Interest Rate
Non-Financing Education Costs
Direct Costs of Education	19719	19719	19719	19719	19719
Pre-Tax Scholarship Income	2458	2458	2458	2458	2458
Income Before Education	63710	63710	63710	63710	63710
Income During Education	25211	25211	25211	25211	25211
Pre-Tax Foregone Earnings	38499	38499	38499	38499	38499
AETR Before Education (%)	0.4	0.4	0.4	0.4	0.4
AETR During Education (Exclusive of Tax Expenditures) (%)	-14.3	-14.3	-14.3	-14.3	-14.3
Value of Education Tax Credits % of Direct Costs	6.9	6.9	6.9	6.9	6.9
AETR During Education (Inclusive of Tax Expenditures) (%)	-19.0	-19.0	-19.0	-19.0	-19.0
METR on Foregone Earnings (%)	10.1	10.1	10.1	10.1	10.1
Total Annual Non-Financing Costs of Education (Direct Costs & Foregone Earnings)	50680	50680	50680	50680	50680
Education Financing Costs
Fraction of Costs Borrowed	None	Direct Costs	All Costs	Direct Costs	All Costs
Total Amount Borrowed	0	19719	50680	19719	50680
Interest Rate (%)	NA	0.0	0.0	6.0	6.0
Annual Repayments	0	1676	4308	6704	17231
Debt Finance Multiplier	1.00	0.59	0.59	1.41	1.41
Returns to Education
Breakeven Earnings Level	77407	74809	71600	79451	82661
AETR After Education (%)	3.4	2.5	2.1	3.6	3.9
Breakeven Earnings Increment	13697	11099	7890	15741	18951
Breakeven Earnings Increment % of Previous Wage	21.5	17.4	12.4	24.7	29.7
METR Breakeven Earnings Increment (%)	17.1	14.1	15.4	16.3	15.4
Marginal Effective Tax Rate on Skills (%)	8.8	3.8	7.0	9.0	6.9
Average Effective Tax Rate on Skills (Assumed 15% Return, %)	19.0	22.3	25.8	14.5	3.8
Average Effective Tax Rate on Skills (Return based on Labour Market Premium, %)	18.9	21.5	24.2	15.5	7.3
Government Costs and Returns
Government Educational Costs	48133	56267	69039	39999	27227
Marginal Returns to Costs Ratio	0.22	0.18	0.23	0.21	0.24
Average Returns to Costs Ratio (Return based on Labour Market Premium)	1.28	1.09	0.89	1.54	2.26
https://doi.org/10.1787/888933447044

Table C.34. Comparing Financial Incentives for Differing Savings-Financed Education Scenarios - Mexico
Single, No Children, Annual Data							Currency: MXN
Age	17	27	32	40	32	40	50	50
Income Before Education, %AW	70	100	100	100	100	100	100	100
Income During Education, %AW	25	25	25	25	95	95	25	25
Years of Education	4	1	1	1	0.05	0.05	1	1
Education is Job Related	No	No	No	No	Yes	Yes	No	Yes
Financial Costs of Up-Skilling
Direct Costs of Education	19719	19719	19719	19719	8994	8994	19719	19719
Pre-Tax Scholarship Income	2458	2458	2458	2458	0	0	2458	0
Income Before Education	63710	91014	91014	91014	91014	91014	91014	91014
Income During Education	25211	25211	25211	25211	90787	90787	25211	22754
Pre-Tax Foregone Earnings	38499	65803	65803	65803	228	228	65803	68261
AETR Before Education (%)	0.4	7.9	7.9	7.9	7.9	7.9	7.9	7.9
AETR During Education (Exclusive of Tax Expenditures) (%)	-14.3	-14.3	-14.3	-14.3	7.8	7.8	-14.3	-16.5
Value of Education Tax Credits % of Direct Costs	6.9	6.9	6.9	6.9	44.7	44.7	6.9	5.3
AETR During Education (Inclusive of Tax Expenditures) (%)	-19.0	-19.0	-19.0	-19.0	3.4	3.4	-19.0	-21.1
METR on Foregone Earnings (%)	10.1	16.3	16.3	16.3	13.5	13.5	16.3	16.0
Total Costs of Education (Direct Costs & Foregone Earnings)	50680	71122	71122	71122	5170	5170	71122	76037
Financial Returns to Up-Skilling
Breakeven Earnings Level	77407	95912	96275	97169	91397	91462	99725	100328
AETR After Education (%)	3.4	8.3	8.3	8.4	7.9	7.9	8.6	8.6
Breakeven Earnings Increment	13697	4898	5260	6155	382	447	8711	9313
Breakeven Earnings Increment % of Previous Wage	21.5	5.4	5.8	6.8	0.4	0.5	9.6	10.2
METR Breakeven Earnings Increment (%)	17.1	15.9	15.9	15.9	15.9	15.9	15.9	15.9
Marginal Effective Tax Rate on Skills (%)	8.8	1.8	1.8	1.8	-49.9	-49.9	1.8	2.7
Average Effective Tax Rate on Skills (Assumed 15% Return, %)	19.0	12.5	12.3	11.6	-11.7	-16.5	9.6	9.6
Government Costs and Returns
Government Educational Costs	48133	54996	54996	54996	44647	44647	54996	52538
Marginal Returns to Costs Ratio	0.22	0.25	0.25	0.25	0.02	0.02	0.25	0.27
Average Returns to Costs Ratio (Assumed 15% Return)	1.00	0.93	0.87	0.74	0.05	0.04	0.53	0.55
https://doi.org/10.1787/888933447057

Netherlands

Table C.35. Comparing Financial Incentives for College Education with Different Financing Scenarios - Netherlands
Single, No Children, 17 Year-Old, Four Years of Education, 70% of the Average Wage					Currency: EUR
Scenario	No Borrowing	Direct Costs Borrowed, Low Interest Rate	All Costs Borrowed, Low Interest Rate	Direct Costs Borrowed, High Interest Rate	All Costs Borrowed, High Interest Rate
Non-Financing Education Costs
Direct Costs of Education	2212	2212	2212	2212	2212
Pre-Tax Scholarship Income	1869	1869	1869	1869	1869
Income Before Education	32401	32401	32401	32401	32401
Income During Education	13441	13441	13441	13441	13441
Pre-Tax Foregone Earnings	18960	18960	18960	18960	18960
AETR Before Education (%)	6.1	6.1	6.1	6.1	6.1
AETR During Education (Exclusive of Tax Expenditures) (%)	0.8	0.8	0.8	0.8	0.8
Value of Education Tax Credits % of Direct Costs	14.4	14.4	14.4	14.4	14.4
AETR During Education (Inclusive of Tax Expenditures) (%)	0.5	0.5	0.5	0.5	0.5
METR on Foregone Earnings (%)	9.8	9.8	9.8	9.8	9.8
Total Annual Non-Financing Costs of Education (Direct Costs & Foregone Earnings)	17405	17405	17405	17405	17405
Education Financing Costs
Fraction of Costs Borrowed	None	Direct Costs	All Costs	Direct Costs	All Costs
Total Amount Borrowed	0	2212	17405	2212	17405
Interest Rate (%)	NA	0.0	0.0	6.0	6.0
Annual Repayments	0	188	1479	752	5917
Debt Finance Multiplier	1.00	0.59	0.59	1.41	1.41
Returns to Education
Breakeven Earnings Level	39008	38667	36325	39348	41690
AETR After Education (%)	12.0	11.7	9.9	12.2	13.8
Breakeven Earnings Increment	6607	6266	3924	6948	9289
Breakeven Earnings Increment % of Previous Wage	20.4	19.3	12.1	21.4	28.7
METR Breakeven Earnings Increment (%)	41.0	41.0	41.6	40.9	40.7
Marginal Effective Tax Rate on Skills (%)	34.5	34.2	35.2	34.8	34.2
Average Effective Tax Rate on Skills (Assumed 15% Return, %)	39.8	40.7	44.6	38.9	29.4
Average Effective Tax Rate on Skills (Return based on Labour Market Premium, %)	37.9	39.2	45.1	36.6	22.2
Government Costs and Returns
Government Educational Costs	14100	15012	21279	13187	6920
Marginal Returns to Costs Ratio	0.86	0.85	0.99	0.87	1.22
Average Returns to Costs Ratio (Return based on Labour Market Premium)	2.20	2.06	1.46	2.35	4.48
https://doi.org/10.1787/888933447063

Table C.36. Comparing Financial Incentives for Differing Savings-Financed Education Scenarios - Netherlands
Single, No Children, Annual Data							Currency: EUR
Age	17	27	32	40	32	40	50	50
Income Before Education, %AW	70	100	100	100	100	100	100	100
Income During Education, %AW	25	25	25	25	95	95	25	25
Years of Education	4	1	1	1	0.05	0.05	1	1
Education is Job Related	No	No	No	No	Yes	Yes	No	Yes
Financial Costs of Up-Skilling
Direct Costs of Education	2212	2212	2212	2212	4590	4590	2212	2212
Pre-Tax Scholarship Income	1869	1869	1869	1869	0	0	1869	0
Income Before Education	32401	46287	46287	46287	46287	46287	46287	46287
Income During Education	13441	13441	13441	13441	46171	46171	13441	11572
Pre-Tax Foregone Earnings	18960	32846	32846	32846	116	116	32846	34715
AETR Before Education (%)	6.1	16.4	16.4	16.4	16.4	16.4	16.4	16.4
AETR During Education (Exclusive of Tax Expenditures) (%)	0.8	0.8	0.8	0.8	16.3	16.3	0.8	0.8
Value of Education Tax Credits % of Direct Costs	14.4	14.4	14.4	14.4	42.0	42.0	14.4	1.2
AETR During Education (Inclusive of Tax Expenditures) (%)	0.5	0.5	0.5	0.5	12.1	12.1	0.5	0.5
METR on Foregone Earnings (%)	9.8	22.7	22.7	22.7	40.1	40.1	22.7	21.6
Total Costs of Education (Direct Costs & Foregone Earnings)	17405	25669	25669	25669	2730	2730	25669	29407
Financial Returns to Up-Skilling
Breakeven Earnings Level	39008	48767	48951	49404	46570	46618	50697	51339
AETR After Education (%)	12.0	17.6	17.7	17.9	16.5	16.6	18.4	18.7
Breakeven Earnings Increment	6607	2480	2664	3117	283	331	4410	5052
Breakeven Earnings Increment % of Previous Wage	20.4	5.4	5.8	6.7	0.6	0.7	9.5	10.9
METR Breakeven Earnings Increment (%)	41.0	40.1	40.1	40.1	40.1	40.1	40.1	40.1
Marginal Effective Tax Rate on Skills (%)	34.5	22.5	22.5	22.5	-3.3	-3.3	22.5	24.7
Average Effective Tax Rate on Skills (Assumed 15% Return, %)	39.8	35.8	35.5	34.6	13.5	9.0	32.2	32.2
Government Costs and Returns
Government Educational Costs	14100	19722	19722	19722	12309	12309	19722	17853
Marginal Returns to Costs Ratio	0.86	0.87	0.87	0.87	0.15	0.15	0.87	1.10
Average Returns to Costs Ratio (Assumed 15% Return)	3.40	3.29	3.06	2.62	0.24	0.21	1.85	2.04
https://doi.org/10.1787/888933447073

New Zealand

Table C.37. Comparing Financial Incentives for College Education with Different Financing Scenarios - New Zealand
Single, No Children, 17 Year-Old, Four Years of Education, 70% of the Average Wage					Currency: NZD
Scenario	No Borrowing	Direct Costs Borrowed, Low Interest Rate	All Costs Borrowed, Low Interest Rate	Direct Costs Borrowed, High Interest Rate	All Costs Borrowed, High Interest Rate
Non-Financing Education Costs
Direct Costs of Education	5581	5581	5581	5581	5581
Pre-Tax Scholarship Income	2829	2829	2829	2829	2829
Income Before Education	34577	34577	34577	34577	34577
Income During Education	15178	15178	15178	15178	15178
Pre-Tax Foregone Earnings	19399	19399	19399	19399	19399
AETR Before Education (%)	13.2	13.2	13.2	13.2	13.2
AETR During Education (Exclusive of Tax Expenditures) (%)	11.0	11.0	11.0	11.0	11.0
Value of Education Tax Credits % of Direct Costs	13.8	13.8	13.8	13.8	13.8
AETR During Education (Inclusive of Tax Expenditures) (%)	8.5	8.5	8.5	8.5	8.5
METR on Foregone Earnings (%)	14.8	14.8	14.8	14.8	14.8
Total Annual Non-Financing Costs of Education (Direct Costs & Foregone Earnings)	18896	18896	18896	18896	18896
Education Financing Costs
Fraction of Costs Borrowed	None	Direct Costs	All Costs	Direct Costs	All Costs
Total Amount Borrowed	0	5581	18896	5581	18896
Interest Rate (%)	NA	0.0	0.0	6.0	6.0
Annual Repayments	0	474	1606	1897	6425
Debt Finance Multiplier	1.00	0.59	0.59	1.41	1.41
Returns to Education
Breakeven Earnings Level	39709	39084	37592	40334	41826
AETR After Education (%)	13.7	13.7	13.5	13.8	13.9
Breakeven Earnings Increment	5133	4507	3015	5758	7250
Breakeven Earnings Increment % of Previous Wage	14.8	13.0	8.7	16.7	21.0
METR Breakeven Earnings Increment (%)	17.5	17.5	17.5	17.5	17.5
Marginal Effective Tax Rate on Skills (%)	3.3	1.3	3.3	4.8	3.3
Average Effective Tax Rate on Skills (Assumed 15% Return, %)	23.2	25.1	28.6	20.8	11.6
Average Effective Tax Rate on Skills (Return based on Labour Market Premium, %)	12.3	17.4	26.3	6.1	-17.4
Government Costs and Returns
Government Educational Costs	16227	18529	24021	13925	8432
Marginal Returns to Costs Ratio	0.25	0.25	0.28	0.26	0.34
Average Returns to Costs Ratio (Return based on Labour Market Premium)	0.56	0.49	0.38	0.66	1.09
https://doi.org/10.1787/888933447083

Table C.38. Comparing Financial Incentives for Differing Savings-Financed Education Scenarios - New Zealand
Single, No Children, Annual Data							Currency: NZD
Age	17	27	32	40	32	40	50	50
Income Before Education, %AW	70	100	100	100	100	100	100	100
Income During Education, %AW	25	25	25	25	95	95	25	25
Years of Education	4	1	1	1	0.05	0.05	1	1
Education is Job Related	No	No	No	No	Yes	Yes	No	Yes
Financial Costs of Up-Skilling
Direct Costs of Education	5581	5581	5581	5581	4940	4940	5581	5581
Pre-Tax Scholarship Income	2829	2829	2829	2829	0	0	2829	0
Income Before Education	34577	49395	49395	49395	49395	49395	49395	49395
Income During Education	15178	15178	15178	15178	49272	49272	15178	12349
Pre-Tax Foregone Earnings	19399	34217	34217	34217	123	123	34217	37046
AETR Before Education (%)	13.2	15.9	15.9	15.9	15.9	15.9	15.9	15.9
AETR During Education (Exclusive of Tax Expenditures) (%)	11.0	11.0	11.0	11.0	15.8	15.8	11.0	10.5
Value of Education Tax Credits % of Direct Costs	13.8	13.8	13.8	13.8	0.0	0.0	13.8	0.0
AETR During Education (Inclusive of Tax Expenditures) (%)	8.5	8.5	8.5	8.5	15.8	15.8	8.5	10.5
METR on Foregone Earnings (%)	14.8	18.0	18.0	18.0	30.0	30.0	18.0	17.7
Total Costs of Education (Direct Costs & Foregone Earnings)	18896	30427	30427	30427	5026	5026	30427	36085
Financial Returns to Up-Skilling
Breakeven Earnings Level	39709	51911	52098	52557	49841	49917	53871	54703
AETR After Education (%)	13.7	16.6	16.6	16.7	16.0	16.0	17.0	17.2
Breakeven Earnings Increment	5133	2516	2703	3162	446	522	4476	5308
Breakeven Earnings Increment % of Previous Wage	14.8	5.1	5.5	6.4	0.9	1.1	9.1	10.7
METR Breakeven Earnings Increment (%)	17.5	30.0	30.0	30.0	30.0	30.0	30.0	30.0
Marginal Effective Tax Rate on Skills (%)	3.3	15.0	15.0	15.0	29.5	29.5	15.0	17.3
Average Effective Tax Rate on Skills (Assumed 15% Return, %)	23.2	26.2	25.9	25.2	29.5	29.5	23.2	23.2
Government Costs and Returns
Government Educational Costs	16227	19514	19514	19514	10180	10180	19514	16685
Marginal Returns to Costs Ratio	0.25	0.67	0.67	0.67	0.21	0.21	0.67	0.93
Average Returns to Costs Ratio (Assumed 15% Return)	1.96	2.62	2.44	2.09	0.23	0.20	1.48	1.73
https://doi.org/10.1787/888933447091

Norway

Table C.39. Comparing Financial Incentives for College Education with Different Financing Scenarios - Norway
Single, No Children, 17 Year-Old, Four Years of Education, 70% of the Average Wage					Currency: NOK
Scenario	No Borrowing	Direct Costs Borrowed, Low Interest Rate	All Costs Borrowed, Low Interest Rate	Direct Costs Borrowed, High Interest Rate	All Costs Borrowed, High Interest Rate
Non-Financing Education Costs
Direct Costs of Education	5815	5815	5815	5815	5815
Pre-Tax Scholarship Income	29732	29732	29732	29732	29732
Income Before Education	343708	343708	343708	343708	343708
Income During Education	152485	152485	152485	152485	152485
Pre-Tax Foregone Earnings	191223	191223	191223	191223	191223
AETR Before Education (%)	18.3	18.3	18.3	18.3	18.3
AETR During Education (Exclusive of Tax Expenditures) (%)	9.9	9.9	9.9	9.9	9.9
Value of Education Tax Credits % of Direct Costs	-22.3	-22.3	-22.3	-22.3	-22.3
AETR During Education (Inclusive of Tax Expenditures) (%)	6.4	6.4	6.4	6.4	6.4
METR on Foregone Earnings (%)	25.0	25.0	25.0	25.0	25.0
Total Annual Non-Financing Costs of Education (Direct Costs & Foregone Earnings)	114108	114108	114108	114108	114108
Education Financing Costs
Fraction of Costs Borrowed	None	Direct Costs	All Costs	Direct Costs	All Costs
Total Amount Borrowed	0	5815	114108	5815	114108
Interest Rate (%)	NA	0.0	0.0	6.0	6.0
Annual Repayments	0	494	9699	1977	38796
Debt Finance Multiplier	1.00	0.58	0.58	1.42	1.42
Returns to Education
Breakeven Earnings Level	378556	377813	363983	379298	393129
AETR After Education (%)	19.2	19.2	18.9	19.2	19.5
Breakeven Earnings Increment	34848	34105	20275	35591	49421
Breakeven Earnings Increment % of Previous Wage	10.1	9.9	5.9	10.4	14.4
METR Breakeven Earnings Increment (%)	28.0	28.0	28.0	28.0	28.0
Marginal Effective Tax Rate on Skills (%)	-5.6	-6.3	-5.6	-4.9	-5.6
Average Effective Tax Rate on Skills (Assumed 15% Return, %)	28.6	28.9	33.6	28.3	18.9
Average Effective Tax Rate on Skills (Return based on Labour Market Premium, %)	17.8	18.5	29.9	17.1	-5.4
Government Costs and Returns
Government Educational Costs	245037	247469	292755	242605	197319
Marginal Returns to Costs Ratio	0.18	0.18	0.26	0.18	0.16
Average Returns to Costs Ratio (Return based on Labour Market Premium)	0.60	0.59	0.50	0.60	0.74
https://doi.org/10.1787/888933447108

Table C.40. Comparing Financial Incentives for Differing Savings-Financed Education Scenarios - Norway
Single, No Children, Annual Data							Currency: NOK
Age	17	27	32	40	32	40	50	50
Income Before Education, %AW	70	100	100	100	100	100	100	100
Income During Education, %AW	25	25	25	25	95	95	25	25
Years of Education	4	1	1	1	0.05	0.05	1	1
Education is Job Related	No	No	No	No	Yes	Yes	No	Yes
Financial Costs of Up-Skilling
Direct Costs of Education	5815	5815	5815	5815	48732	48732	5815	5815
Pre-Tax Scholarship Income	29732	29732	29732	29732	0	0	29732	0
Income Before Education	343708	491011	491011	491011	491011	491011	491011	491011
Income During Education	152485	152485	152485	152485	489783	489783	152485	122753
Pre-Tax Foregone Earnings	191223	338526	338526	338526	1228	1228	338526	368258
AETR Before Education (%)	18.3	21.6	21.6	21.6	21.6	21.6	21.6	21.6
AETR During Education (Exclusive of Tax Expenditures) (%)	9.9	9.9	9.9	9.9	21.6	21.6	9.9	8.0
Value of Education Tax Credits % of Direct Costs	-22.3	-22.3	-22.3	-22.3	0.0	0.0	-22.3	0.0
AETR During Education (Inclusive of Tax Expenditures) (%)	6.4	6.4	6.4	6.4	21.6	21.6	6.4	8.0
METR on Foregone Earnings (%)	25.0	26.9	26.9	26.9	37.0	37.0	26.9	26.1
Total Costs of Education (Direct Costs & Foregone Earnings)	114108	218383	218383	218383	49506	49506	218383	277847
Financial Returns to Up-Skilling
Breakeven Earnings Level	378556	510591	511918	515102	495750	496472	523561	532424
AETR After Education (%)	19.2	22.2	22.2	22.3	21.7	21.8	22.5	22.8
Breakeven Earnings Increment	34848	19580	20907	24091	4739	5461	32550	41413
Breakeven Earnings Increment % of Previous Wage	10.1	4.0	4.3	4.9	1.0	1.1	6.6	8.4
METR Breakeven Earnings Increment (%)	28.0	37.0	37.0	37.0	37.0	37.0	37.0	37.0
Marginal Effective Tax Rate on Skills (%)	-5.6	9.2	9.2	9.2	36.4	36.4	9.2	15.2
Average Effective Tax Rate on Skills (Assumed 15% Return, %)	28.6	31.5	31.1	30.2	36.4	36.4	27.8	27.8
Government Costs and Returns
Government Educational Costs	245037	288065	288065	288065	162561	162561	288065	258333
Marginal Returns to Costs Ratio	0.18	0.45	0.45	0.45	0.18	0.18	0.45	0.63
Average Returns to Costs Ratio (Assumed 15% Return)	1.68	2.23	2.09	1.81	0.19	0.16	1.34	1.50
https://doi.org/10.1787/888933447110

Poland

Table C.41. Comparing Financial Incentives for College Education with Different Financing Scenarios - Poland
Single, No Children, 17 Year-Old, Four Years of Education, 70% of the Average Wage					Currency: PLN
Scenario	No Borrowing	Direct Costs Borrowed, Low Interest Rate	All Costs Borrowed, Low Interest Rate	Direct Costs Borrowed, High Interest Rate	All Costs Borrowed, High Interest Rate
Non-Financing Education Costs
Direct Costs of Education	3982	3982	3982	3982	3982
Pre-Tax Scholarship Income	1860	1860	1860	1860	1860
Income Before Education	27112	27112	27112	27112	27112
Income During Education	11543	11543	11543	11543	11543
Pre-Tax Foregone Earnings	15569	15569	15569	15569	15569
AETR Before Education (%)	5.9	5.9	5.9	5.9	5.9
AETR During Education (Exclusive of Tax Expenditures) (%)	1.9	1.9	1.9	1.9	1.9
Value of Education Tax Credits % of Direct Costs	-22.8	-22.8	-22.8	-22.8	-22.8
AETR During Education (Inclusive of Tax Expenditures) (%)	6.1	6.1	6.1	6.1	6.1
METR on Foregone Earnings (%)	8.8	8.8	8.8	8.8	8.8
Total Annual Non-Financing Costs of Education (Direct Costs & Foregone Earnings)	16796	16796	16796	16796	16796
Education Financing Costs
Fraction of Costs Borrowed	None	Direct Costs	All Costs	Direct Costs	All Costs
Total Amount Borrowed	0	3982	16796	3982	16796
Interest Rate (%)	NA	0.0	0.0	6.0	6.0
Annual Repayments	0	338	1428	1354	5710
Debt Finance Multiplier	1.00	0.59	0.59	1.41	1.41
Returns to Education
Breakeven Earnings Level	31241	30837	29537	31644	32944
AETR After Education (%)	6.3	6.3	6.1	6.3	6.4
Breakeven Earnings Increment	4129	3725	2426	4533	5832
Breakeven Earnings Increment % of Previous Wage	15.2	13.7	8.9	16.7	21.5
METR Breakeven Earnings Increment (%)	8.8	8.8	8.8	8.8	8.8
Marginal Effective Tax Rate on Skills (%)	4.0	3.5	4.0	4.4	4.0
Average Effective Tax Rate on Skills (Assumed 15% Return, %)	7.9	9.5	12.7	6.0	-3.1
Average Effective Tax Rate on Skills (Return based on Labour Market Premium, %)	8.1	9.4	11.8	6.6	-0.3
Government Costs and Returns
Government Educational Costs	16054	17697	22983	14412	9126
Marginal Returns to Costs Ratio	0.10	0.10	0.12	0.10	0.13
Average Returns to Costs Ratio (Return based on Labour Market Premium)	0.69	0.63	0.49	0.77	1.22
https://doi.org/10.1787/888933447127

Table C.42. Comparing Financial Incentives for Differing Savings-Financed Education Scenarios - Poland
Single, No Children, Annual Data							Currency: PLN
Age	17	27	32	40	32	40	50	50
Income Before Education, %AW	70	100	100	100	100	100	100	100
Income During Education, %AW	25	25	25	25	95	95	25	25
Years of Education	4	1	1	1	0.05	0.05	1	1
Education is Job Related	No	No	No	No	Yes	Yes	No	Yes
Financial Costs of Up-Skilling
Direct Costs of Education	3982	3982	3982	3982	3856	3856	3982	3982
Pre-Tax Scholarship Income	1860	1860	1860	1860	0	0	1860	0
Income Before Education	27112	38731	38731	38731	38731	38731	38731	38731
Income During Education	11543	11543	11543	11543	38634	38634	11543	9683
Pre-Tax Foregone Earnings	15569	27188	27188	27188	97	97	27188	29048
AETR Before Education (%)	5.9	6.8	6.8	6.8	6.8	6.8	6.8	6.8
AETR During Education (Exclusive of Tax Expenditures) (%)	1.9	1.9	1.9	1.9	6.8	6.8	1.9	0.6
Value of Education Tax Credits % of Direct Costs	-22.8	7.8	7.8	7.8	0.0	0.0	7.8	0.0
AETR During Education (Inclusive of Tax Expenditures) (%)	6.1	0.5	0.5	0.5	6.8	6.8	0.5	0.6
METR on Foregone Earnings (%)	8.8	8.8	8.8	8.8	8.8	8.8	8.8	8.8
Total Costs of Education (Direct Costs & Foregone Earnings)	16796	26740	26740	26740	3944	3944	26740	30461
Financial Returns to Up-Skilling
Breakeven Earnings Level	31241	40429	40555	40865	39000	39046	41751	42172
AETR After Education (%)	6.3	6.9	6.9	6.9	6.8	6.8	6.9	7.0
Breakeven Earnings Increment	4129	1698	1824	2134	269	315	3020	3441
Breakeven Earnings Increment % of Previous Wage	15.2	4.4	4.7	5.5	0.7	0.8	7.8	8.9
METR Breakeven Earnings Increment (%)	8.8	8.8	8.8	8.8	8.8	8.8	8.8	8.8
Marginal Effective Tax Rate on Skills (%)	4.0	0.1	0.1	0.1	8.6	8.6	0.1	1.2
Average Effective Tax Rate on Skills (Assumed 15% Return, %)	7.9	6.9	6.8	6.4	8.7	8.7	5.4	5.4
Government Costs and Returns
Government Educational Costs	16054	17730	17730	17730	13309	13309	17730	15869
Marginal Returns to Costs Ratio	0.10	0.15	0.15	0.15	0.03	0.03	0.15	0.19
Average Returns to Costs Ratio (Assumed 15% Return)	0.53	0.67	0.62	0.53	0.04	0.04	0.38	0.42
https://doi.org/10.1787/888933447135

Portugal

Table C.43. Comparing Financial Incentives for College Education with Different Financing Scenarios - Portugal
Single, No Children, 17 Year-Old, Four Years of Education, 70% of the Average Wage					Currency: EUR
Scenario	No Borrowing	Direct Costs Borrowed, Low Interest Rate	All Costs Borrowed, Low Interest Rate	Direct Costs Borrowed, High Interest Rate	All Costs Borrowed, High Interest Rate
Non-Financing Education Costs
Direct Costs of Education	1347	1347	1347	1347	1347
Pre-Tax Scholarship Income	708	708	708	708	708
Income Before Education	11346	11346	11346	11346	11346
Income During Education	4760	4760	4760	4760	4760
Pre-Tax Foregone Earnings	6586	6586	6586	6586	6586
AETR Before Education (%)	5.7	5.7	5.7	5.7	5.7
AETR During Education (Exclusive of Tax Expenditures) (%)	0.0	0.0	0.0	0.0	0.0
Value of Education Tax Credits % of Direct Costs	0.0	0.0	0.0	0.0	0.0
AETR During Education (Inclusive of Tax Expenditures) (%)	0.0	0.0	0.0	0.0	0.0
METR on Foregone Earnings (%)	9.8	9.8	9.8	9.8	9.8
Total Annual Non-Financing Costs of Education (Direct Costs & Foregone Earnings)	6580	6580	6580	6580	6580
Education Financing Costs
Fraction of Costs Borrowed	None	Direct Costs	All Costs	Direct Costs	All Costs
Total Amount Borrowed	0	1347	6580	1347	6580
Interest Rate (%)	NA	0.0	0.0	6.0	6.0
Annual Repayments	0	114	559	458	2237
Debt Finance Multiplier	1.00	0.59	0.59	1.41	1.41
Returns to Education
Breakeven Earnings Level	13369	13196	12524	13542	14214
AETR After Education (%)	8.9	8.7	7.7	9.2	10.1
Breakeven Earnings Increment	2023	1850	1179	2196	2868
Breakeven Earnings Increment % of Previous Wage	17.8	16.3	10.4	19.4	25.3
METR Breakeven Earnings Increment (%)	27.1	27.0	26.5	27.2	27.4
Marginal Effective Tax Rate on Skills (%)	20.0	19.2	19.3	20.6	20.3
Average Effective Tax Rate on Skills (Assumed 15% Return, %)	26.2	27.6	31.2	24.6	15.2
Average Effective Tax Rate on Skills (Return based on Labour Market Premium, %)	27.2	28.3	31.1	26.0	18.7
Government Costs and Returns
Government Educational Costs	5501	6057	8215	4945	2787
Marginal Returns to Costs Ratio	0.45	0.44	0.49	0.46	0.63
Average Returns to Costs Ratio (Return based on Labour Market Premium)	2.72	2.47	1.82	3.02	5.37
https://doi.org/10.1787/888933447141

Table C.44. Comparing Financial Incentives for Differing Savings-Financed Education Scenarios - Portugal
Single, No Children, Annual Data							Currency: EUR
Age	17	27	32	40	32	40	50	50
Income Before Education, %AW	70	100	100	100	100	100	100	100
Income During Education, %AW	25	25	25	25	95	95	25	25
Years of Education	4	1	1	1	0.05	0.05	1	1
Education is Job Related	No	No	No	No	Yes	Yes	No	Yes
Financial Costs of Up-Skilling
Direct Costs of Education	1347	1347	1347	1347	1759	1759	1347	1347
Pre-Tax Scholarship Income	708	708	708	708	0	0	708	0
Income Before Education	11346	16208	16208	16208	16208	16208	16208	16208
Income During Education	4760	4760	4760	4760	16167	16167	4760	4052
Pre-Tax Foregone Earnings	6586	11448	11448	11448	41	41	11448	12156
AETR Before Education (%)	5.7	12.3	12.3	12.3	12.3	12.3	12.3	12.3
AETR During Education (Exclusive of Tax Expenditures) (%)	0.0	0.0	0.0	0.0	12.2	12.2	0.0	0.0
Value of Education Tax Credits % of Direct Costs	0.0	0.0	0.0	0.0	2.7	2.7	0.0	0.0
AETR During Education (Inclusive of Tax Expenditures) (%)	0.0	0.0	0.0	0.0	11.9	11.9	0.0	0.0
METR on Foregone Earnings (%)	9.8	17.4	17.4	17.4	28.0	28.0	17.4	16.4
Total Costs of Education (Direct Costs & Foregone Earnings)	6580	10098	10098	10098	1740	1740	10098	11513
Financial Returns to Up-Skilling
Breakeven Earnings Level	13369	17020	17080	17228	16358	16384	17652	17854
AETR After Education (%)	8.9	13.0	13.1	13.2	12.4	12.4	13.6	13.7
Breakeven Earnings Increment	2023	812	872	1020	150	176	1444	1646
Breakeven Earnings Increment % of Previous Wage	17.8	5.0	5.4	6.3	0.9	1.1	8.9	10.2
METR Breakeven Earnings Increment (%)	27.1	28.0	28.0	28.0	28.0	28.0	28.0	28.0
Marginal Effective Tax Rate on Skills (%)	20.0	13.8	13.8	13.8	25.5	25.5	13.8	15.6
Average Effective Tax Rate on Skills (Assumed 15% Return, %)	26.0	24.0	24.0	24.0	26.0	25.0	22.0	22.0
Government Costs and Returns
Government Educational Costs	5501	6845	6845	6845	4207	4207	6845	6137
Marginal Returns to Costs Ratio	0.45	0.57	0.57	0.57	0.16	0.16	0.57	0.73
Average Returns to Costs Ratio (Assumed 15% Return)	2.05	2.29	2.13	1.82	0.17	0.15	1.29	1.44
https://doi.org/10.1787/888933447154

Slovak Republic

Table C.45. Comparing Financial Incentives for College Education with Different Financing Scenarios - Slovak Republic
Single, No Children, 17 Year-Old, Four Years of Education, 70% of the Average Wage					Currency: EUR
Scenario	No Borrowing	Direct Costs Borrowed, Low Interest Rate	All Costs Borrowed, Low Interest Rate	Direct Costs Borrowed, High Interest Rate	All Costs Borrowed, High Interest Rate
Non-Financing Education Costs
Direct Costs of Education	641	641	641	641	641
Pre-Tax Scholarship Income	640	640	640	640	640
Income Before Education	6714	6714	6714	6714	6714
Income During Education	3038	3038	3038	3038	3038
Pre-Tax Foregone Earnings	3677	3677	3677	3677	3677
AETR Before Education (%)	6.4	6.4	6.4	6.4	6.4
AETR During Education (Exclusive of Tax Expenditures) (%)	-1.7	-1.7	-1.7	-1.7	-1.7
Value of Education Tax Credits % of Direct Costs	0.0	0.0	0.0	0.0	0.0
AETR During Education (Inclusive of Tax Expenditures) (%)	-1.7	-1.7	-1.7	-1.7	-1.7
METR on Foregone Earnings (%)	13.0	13.0	13.0	13.0	13.0
Total Annual Non-Financing Costs of Education (Direct Costs & Foregone Earnings)	3200	3200	3200	3200	3200
Education Financing Costs
Fraction of Costs Borrowed	None	Direct Costs	All Costs	Direct Costs	All Costs
Total Amount Borrowed	0	641	3200	641	3200
Interest Rate (%)	NA	0.0	0.0	6.0	6.0
Annual Repayments	0	54	272	218	1088
Debt Finance Multiplier	1.00	0.60	0.60	1.40	1.40
Returns to Education
Breakeven Earnings Level	7600	7528	7243	7671	7957
AETR After Education (%)	7.6	7.5	7.1	7.6	8.0
Breakeven Earnings Increment	885	814	528	957	1242
Breakeven Earnings Increment % of Previous Wage	13.2	12.1	7.9	14.3	18.5
METR Breakeven Earnings Increment (%)	16.5	16.5	16.5	16.5	16.5
Marginal Effective Tax Rate on Skills (%)	4.0	2.9	4.0	4.9	4.0
Average Effective Tax Rate on Skills (Assumed 15% Return, %)	14.4	15.6	19.0	13.0	4.6
Average Effective Tax Rate on Skills (Return based on Labour Market Premium, %)	14.4	15.6	19.1	13.0	4.5
Government Costs and Returns
Government Educational Costs	4316	4574	5606	4057	3025
Marginal Returns to Costs Ratio	0.15	0.15	0.19	0.14	0.15
Average Returns to Costs Ratio (Return based on Labour Market Premium)	0.88	0.83	0.68	0.94	1.26
https://doi.org/10.1787/888933447167

Table C.46. Comparing Financial Incentives for Differing Savings-Financed Education Scenarios - Slovak Republic
Single, No Children, Annual Data							Currency: EUR
Age	17	27	32	40	32	40	50	50
Income Before Education, %AW	70	100	100	100	100	100	100	100
Income During Education, %AW	25	25	25	25	95	95	25	25
Years of Education	4	1	1	1	0.05	0.05	1	1
Education is Job Related	No	No	No	No	Yes	Yes	No	Yes
Financial Costs of Up-Skilling
Direct Costs of Education	641	641	641	641	966	966	641	641
Pre-Tax Scholarship Income	640	640	640	640	0	0	640	0
Income Before Education	6714	9592	9592	9592	9592	9592	9592	9592
Income During Education	3038	3038	3038	3038	9568	9568	3038	2398
Pre-Tax Foregone Earnings	3677	6554	6554	6554	24	24	6554	7194
AETR Before Education (%)	6.4	9.4	9.4	9.4	9.4	9.4	9.4	9.4
AETR During Education (Exclusive of Tax Expenditures) (%)	-1.7	-1.7	-1.7	-1.7	9.4	9.4	-1.7	-2.1
Value of Education Tax Credits % of Direct Costs	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0
AETR During Education (Inclusive of Tax Expenditures) (%)	-1.7	-1.7	-1.7	-1.7	9.4	9.4	-1.7	-2.1
METR on Foregone Earnings (%)	13.0	14.5	14.5	14.5	16.5	16.5	14.5	13.2
Total Costs of Education (Direct Costs & Foregone Earnings)	3200	5604	5604	5604	986	986	5604	6883
Financial Returns to Up-Skilling
Breakeven Earnings Level	7600	9997	10031	10121	9669	9685	10415	10603
AETR After Education (%)	7.6	9.7	9.7	9.8	9.5	9.5	10.0	10.1
Breakeven Earnings Increment	885	405	439	529	77	93	823	1011
Breakeven Earnings Increment % of Previous Wage	13.2	4.2	4.6	5.5	0.8	1.0	8.6	10.5
METR Breakeven Earnings Increment (%)	16.5	16.5	16.5	16.5	16.5	16.5	16.5	16.5
Marginal Effective Tax Rate on Skills (%)	4.0	2.3	2.3	2.3	16.1	16.1	2.3	4.9
Average Effective Tax Rate on Skills (Assumed 15% Return, %)	14.4	13.5	13.2	12.5	16.2	16.1	10.4	10.4
Government Costs and Returns
Government Educational Costs	4316	4789	4789	4789	3201	3201	4789	4150
Marginal Returns to Costs Ratio	0.15	0.23	0.23	0.23	0.06	0.06	0.23	0.33
Average Returns to Costs Ratio (Assumed 15% Return)	0.89	1.09	1.01	0.84	0.08	0.06	0.54	0.62
https://doi.org/10.1787/888933447177

Slovenia

Table C.47. Comparing Financial Incentives for College Education with Different Financing Scenarios - Slovenia
Single, No Children, 17 Year-Old, Four Years of Education, 70% of the Average Wage					Currency: EUR
Scenario	No Borrowing	Direct Costs Borrowed, Low Interest Rate	All Costs Borrowed, Low Interest Rate	Direct Costs Borrowed, High Interest Rate	All Costs Borrowed, High Interest Rate
Non-Financing Education Costs
Direct Costs of Education	646	646	646	646	646
Pre-Tax Scholarship Income	1589	1589	1589	1589	1589
Income Before Education	12161	12161	12161	12161	12161
Income During Education	5932	5932	5932	5932	5932
Pre-Tax Foregone Earnings	6229	6229	6229	6229	6229
AETR Before Education (%)	8.3	8.3	8.3	8.3	8.3
AETR During Education (Exclusive of Tax Expenditures) (%)	0.0	0.0	0.0	0.0	0.0
Value of Education Tax Credits % of Direct Costs	0.0	0.0	0.0	0.0	0.0
AETR During Education (Inclusive of Tax Expenditures) (%)	0.0	0.0	0.0	0.0	0.0
METR on Foregone Earnings (%)	16.3	16.3	16.3	16.3	16.3
Total Annual Non-Financing Costs of Education (Direct Costs & Foregone Earnings)	4273	4273	4273	4273	4273
Education Financing Costs
Fraction of Costs Borrowed	None	Direct Costs	All Costs	Direct Costs	All Costs
Total Amount Borrowed	0	646	4273	646	4273
Interest Rate (%)	NA	0.0	0.0	6.0	6.0
Annual Repayments	0	55	363	220	1453
Debt Finance Multiplier	1.00	0.59	0.59	1.41	1.41
Returns to Education
Breakeven Earnings Level	13277	13209	12823	13346	13731
AETR After Education (%)	8.7	8.7	8.5	8.7	8.8
Breakeven Earnings Increment	1116	1048	663	1185	1570
Breakeven Earnings Increment % of Previous Wage	9.2	8.6	5.4	9.7	12.9
METR Breakeven Earnings Increment (%)	12.5	12.5	12.5	12.5	12.5
Marginal Effective Tax Rate on Skills (%)	-8.3	-9.6	-8.3	-7.1	-8.3
Average Effective Tax Rate on Skills (Assumed 15% Return, %)	17.2	17.9	21.1	16.4	9.1
Average Effective Tax Rate on Skills (Return based on Labour Market Premium, %)	20.3	20.8	23.0	19.7	14.7
Government Costs and Returns
Government Educational Costs	8150	8413	9887	7887	6413
Marginal Returns to Costs Ratio	0.07	0.08	0.10	0.07	0.07
Average Returns to Costs Ratio (Return based on Labour Market Premium)	1.64	1.59	1.35	1.70	2.09
https://doi.org/10.1787/888933447187

Table C.48. Comparing Financial Incentives for Differing Savings-Financed Education Scenarios - Slovenia
Single, No Children, Annual Data							Currency: EUR
Age	17	27	32	40	32	40	50	50
Income Before Education, %AW	70	100	100	100	100	100	100	100
Income During Education, %AW	25	25	25	25	95	95	25	25
Years of Education	4	1	1	1	0.05	0.05	1	1
Education is Job Related	No	No	No	No	Yes	Yes	No	Yes
Financial Costs of Up-Skilling
Direct Costs of Education	646	646	646	646	1737	1737	646	646
Pre-Tax Scholarship Income	1589	1589	1589	1589	0	0	1589	0
Income Before Education	12161	17373	17373	17373	17373	17373	17373	17373
Income During Education	5932	5932	5932	5932	17329	17329	5932	4343
Pre-Tax Foregone Earnings	6229	11441	11441	11441	43	43	11441	13029
AETR Before Education (%)	8.3	11.3	11.3	11.3	11.3	11.3	11.3	11.3
AETR During Education (Exclusive of Tax Expenditures) (%)	0.0	0.0	0.0	0.0	11.3	11.3	0.0	0.0
Value of Education Tax Credits % of Direct Costs	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0
AETR During Education (Inclusive of Tax Expenditures) (%)	0.0	0.0	0.0	0.0	11.3	11.3	0.0	0.0
METR on Foregone Earnings (%)	16.3	17.2	17.2	17.2	21.0	21.0	17.2	15.1
Total Costs of Education (Direct Costs & Foregone Earnings)	4273	8532	8532	8532	1772	1772	8532	11710
Financial Returns to Up-Skilling
Breakeven Earnings Level	13277	18015	18067	18200	17517	17544	18616	19079
AETR After Education (%)	8.7	11.7	11.7	11.8	11.4	11.4	12.0	12.2
Breakeven Earnings Increment	1116	642	695	828	144	172	1243	1706
Breakeven Earnings Increment % of Previous Wage	9.2	3.7	4.0	4.8	0.8	1.0	7.2	9.8
METR Breakeven Earnings Increment (%)	12.5	21.0	21.0	21.0	21.0	21.0	21.0	21.0
Marginal Effective Tax Rate on Skills (%)	-8.3	2.8	2.8	2.8	20.6	20.6	2.8	7.8
Average Effective Tax Rate on Skills (Assumed 15% Return, %)	17.2	17.7	17.4	16.7	20.7	20.6	14.5	14.5
Government Costs and Returns
Government Educational Costs	8150	9103	9103	9103	5557	5557	9103	7514
Marginal Returns to Costs Ratio	0.07	0.25	0.25	0.25	0.08	0.08	0.25	0.42
Average Returns to Costs Ratio (Assumed 15% Return)	1.02	1.35	1.25	1.05	0.10	0.09	0.70	0.85
https://doi.org/10.1787/888933447194

Spain

Table C.49. Comparing Financial Incentives for College Education with Different Financing Scenarios - Spain
Single, No Children, 17 Year-Old, Four Years of Education, 70% of the Average Wage					Currency: EUR
Scenario	No Borrowing	Direct Costs Borrowed, Low Interest Rate	All Costs Borrowed, Low Interest Rate	Direct Costs Borrowed, High Interest Rate	All Costs Borrowed, High Interest Rate
Non-Financing Education Costs
Direct Costs of Education	1742	1742	1742	1742	1742
Pre-Tax Scholarship Income	750	750	750	750	750
Income Before Education	17861	17861	17861	17861	17861
Income During Education	7128	7128	7128	7128	7128
Pre-Tax Foregone Earnings	10732	10732	10732	10732	10732
AETR Before Education (%)	12.0	12.0	12.0	12.0	12.0
AETR During Education (Exclusive of Tax Expenditures) (%)	0.0	0.0	0.0	0.0	0.0
Value of Education Tax Credits % of Direct Costs	0.0	0.0	0.0	0.0	0.0
AETR During Education (Inclusive of Tax Expenditures) (%)	0.0	0.0	0.0	0.0	0.0
METR on Foregone Earnings (%)	20.0	20.0	20.0	20.0	20.0
Total Annual Non-Financing Costs of Education (Direct Costs & Foregone Earnings)	9583	9583	9583	9583	9583
Education Financing Costs
Fraction of Costs Borrowed	None	Direct Costs	All Costs	Direct Costs	All Costs
Total Amount Borrowed	0	1742	9583	1742	9583
Interest Rate (%)	NA	0.0	0.0	6.0	6.0
Annual Repayments	0	148	815	592	3258
Debt Finance Multiplier	1.00	0.59	0.59	1.41	1.41
Returns to Education
Breakeven Earnings Level	20631	20423	19488	20839	21775
AETR After Education (%)	13.4	13.3	12.9	13.5	13.9
Breakeven Earnings Increment	2770	2562	1627	2978	3914
Breakeven Earnings Increment % of Previous Wage	15.5	14.3	9.1	16.7	21.9
METR Breakeven Earnings Increment (%)	22.5	22.5	22.5	22.5	22.5
Marginal Effective Tax Rate on Skills (%)	5.2	3.7	5.2	6.4	5.2
Average Effective Tax Rate on Skills (Assumed 15% Return, %)	21.8	23.1	27.7	20.4	9.7
Average Effective Tax Rate on Skills (Return based on Labour Market Premium, %)	18.1	20.5	28.9	15.4	-4.2
Government Costs and Returns
Government Educational Costs	10090	10809	14043	9371	6137
Marginal Returns to Costs Ratio	0.28	0.28	0.34	0.28	0.32
Average Returns to Costs Ratio (Return based on Labour Market Premium)	0.83	0.78	0.60	0.90	1.37
https://doi.org/10.1787/888933447208

Table C.50. Comparing Financial Incentives for Differing Savings-Financed Education Scenarios - Spain
Single, No Children, Annual Data							Currency: EUR
Age	17	27	32	40	32	40	50	50
Income Before Education, %AW	70	100	100	100	100	100	100	100
Income During Education, %AW	25	25	25	25	95	95	25	25
Years of Education	4	1	1	1	0.05	0.05	1	1
Education is Job Related	No	No	No	No	Yes	Yes	No	Yes
Financial Costs of Up-Skilling
Direct Costs of Education	1742	1742	1742	1742	2522	2522	1742	1742
Pre-Tax Scholarship Income	750	750	750	750	0	0	750	0
Income Before Education	17861	25515	25515	25515	25515	25515	25515	25515
Income During Education	7128	7128	7128	7128	25452	25452	7128	6379
Pre-Tax Foregone Earnings	10732	18387	18387	18387	64	64	18387	19136
AETR Before Education (%)	12.0	15.7	15.7	15.7	15.7	15.7	15.7	15.7
AETR During Education (Exclusive of Tax Expenditures) (%)	0.0	0.0	0.0	0.0	15.7	15.7	0.0	0.0
Value of Education Tax Credits % of Direct Costs	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0
AETR During Education (Inclusive of Tax Expenditures) (%)	0.0	0.0	0.0	0.0	15.7	15.7	0.0	0.0
METR on Foregone Earnings (%)	20.0	21.8	21.8	21.8	26.2	26.2	21.8	20.9
Total Costs of Education (Direct Costs & Foregone Earnings)	9583	15376	15376	15376	2569	2569	15376	16875
Financial Returns to Up-Skilling
Breakeven Earnings Level	20631	26722	26811	27032	25732	25769	27661	27870
AETR After Education (%)	13.4	16.2	16.2	16.3	15.8	15.8	16.5	16.6
Breakeven Earnings Increment	2770	1207	1296	1516	217	253	2146	2355
Breakeven Earnings Increment % of Previous Wage	15.5	4.7	5.1	5.9	0.8	1.0	8.4	9.2
METR Breakeven Earnings Increment (%)	22.5	26.2	26.2	26.2	26.2	26.2	26.2	26.2
Marginal Effective Tax Rate on Skills (%)	5.2	7.0	7.0	7.0	25.7	25.7	7.0	8.7
Average Effective Tax Rate on Skills (Assumed 15% Return, %)	21.8	21.7	21.3	20.5	25.8	25.7	18.1	18.1
Government Costs and Returns
Government Educational Costs	10090	11952	11952	11952	7216	7216	11952	11202
Marginal Returns to Costs Ratio	0.28	0.46	0.46	0.46	0.13	0.13	0.46	0.54
Average Returns to Costs Ratio (Assumed 15% Return)	1.59	1.93	1.80	1.54	0.15	0.13	1.09	1.16
https://doi.org/10.1787/888933447214

Sweden

Table C.51. Comparing Financial Incentives for College Education with Different Financing Scenarios - Sweden
Single, No Children, 17 Year-Old, Four Years of Education, 70% of the Average Wage					Currency: SEK
Scenario	No Borrowing	Direct Costs Borrowed, Low Interest Rate	All Costs Borrowed, Low Interest Rate	Direct Costs Borrowed, High Interest Rate	All Costs Borrowed, High Interest Rate
Non-Financing Education Costs
Direct Costs of Education	331	331	331	331	331
Pre-Tax Scholarship Income	19935	19935	19935	19935	19935
Income Before Education	263416	263416	263416	263416	263416
Income During Education	114012	114012	114012	114012	114012
Pre-Tax Foregone Earnings	149404	149404	149404	149404	149404
AETR Before Education (%)	15.4	15.4	15.4	15.4	15.4
AETR During Education (Exclusive of Tax Expenditures) (%)	7.4	7.4	7.4	7.4	7.4
Value of Education Tax Credits % of Direct Costs	-15.3	-15.3	-15.3	-15.3	-15.3
AETR During Education (Inclusive of Tax Expenditures) (%)	4.8	4.8	4.8	4.8	4.8
METR on Foregone Earnings (%)	21.5	21.5	21.5	21.5	21.5
Total Annual Non-Financing Costs of Education (Direct Costs & Foregone Earnings)	94720	94720	94720	94720	94720
Education Financing Costs
Fraction of Costs Borrowed	None	Direct Costs	All Costs	Direct Costs	All Costs
Total Amount Borrowed	0	331	94720	331	94720
Interest Rate (%)	NA	0.0	0.0	6.0	6.0
Annual Repayments	0	28	8051	113	32204
Debt Finance Multiplier	1.00	0.59	0.59	1.41	1.41
Returns to Education
Breakeven Earnings Level	290452	290392	279297	290482	301658
AETR After Education (%)	16.0	16.0	15.7	16.0	16.2
Breakeven Earnings Increment	27035	26976	15881	27066	38242
Breakeven Earnings Increment % of Previous Wage	10.3	10.2	6.0	10.3	14.5
METR Breakeven Earnings Increment (%)	21.5	21.4	21.5	21.5	21.6
Marginal Effective Tax Rate on Skills (%)	-7.6	-7.7	-7.6	-7.6	-7.4
Average Effective Tax Rate on Skills (Assumed 15% Return, %)	29.5	29.5	34.4	29.5	19.9
Average Effective Tax Rate on Skills (Return based on Labour Market Premium, %)	15.6	15.7	25.8	15.6	-4.4
Government Costs and Returns
Government Educational Costs	219390	219526	258462	219253	180318
Marginal Returns to Costs Ratio	0.12	0.12	0.17	0.12	0.10
Average Returns to Costs Ratio (Return based on Labour Market Premium)	0.48	0.48	0.41	0.48	0.59
https://doi.org/10.1787/888933447228

Table C.52. Comparing Financial Incentives for Differing Savings-Financed Education Scenarios - Sweden
Single, No Children, Annual Data							Currency: SEK
Age	17	27	32	40	32	40	50	50
Income Before Education, %AW	70	100	100	100	100	100	100	100
Income During Education, %AW	25	25	25	25	95	95	25	25
Years of Education	4	1	1	1	0.05	0.05	1	1
Education is Job Related	No	No	No	No	Yes	Yes	No	Yes
Financial Costs of Up-Skilling
Direct Costs of Education	331	331	331	331	37544	37544	331	331
Pre-Tax Scholarship Income	19935	19935	19935	19935	0	0	19935	0
Income Before Education	263416	376309	376309	376309	376309	376309	376309	376309
Income During Education	114012	114012	114012	114012	375368	375368	114012	94077
Pre-Tax Foregone Earnings	149404	262297	262297	262297	941	941	262297	282232
AETR Before Education (%)	15.4	17.9	17.9	17.9	17.9	17.9	17.9	17.9
AETR During Education (Exclusive of Tax Expenditures) (%)	7.4	7.4	7.4	7.4	17.8	17.8	7.4	5.8
Value of Education Tax Credits % of Direct Costs	-15.3	-15.3	-15.3	-15.3	31.6	31.6	-15.3	0.0
AETR During Education (Inclusive of Tax Expenditures) (%)	4.8	4.8	4.8	4.8	14.7	14.7	4.8	5.8
METR on Foregone Earnings (%)	21.5	22.4	22.4	22.4	33.6	33.6	22.4	21.9
Total Costs of Education (Direct Costs & Foregone Earnings)	94720	180982	180982	180982	26323	26323	180982	220853
Financial Returns to Up-Skilling
Breakeven Earnings Level	290452	390140	391131	393634	378377	378781	402845	410264
AETR After Education (%)	16.0	18.1	18.1	18.1	17.9	17.9	18.6	19.1
Breakeven Earnings Increment	27035	13831	14822	17325	2068	2472	26536	33955
Breakeven Earnings Increment % of Previous Wage	10.3	3.7	3.9	4.6	0.5	0.7	7.1	9.0
METR Breakeven Earnings Increment (%)	21.5	24.2	24.1	24.0	20.8	22.5	29.8	33.0
Marginal Effective Tax Rate on Skills (%)	-7.6	-1.6	-1.8	-1.9	-15.7	-13.3	5.8	14.3
Average Effective Tax Rate on Skills (Assumed 15% Return, %)	29.5	37.5	37.2	36.3	2.9	-0.5	33.8	33.8
Government Costs and Returns
Government Educational Costs	219390	246020	246020	246020	176536	176536	246020	226085
Marginal Returns to Costs Ratio	0.12	0.24	0.23	0.23	0.04	0.04	0.31	0.48
Average Returns to Costs Ratio (Assumed 15% Return)	1.43	2.23	2.08	1.78	0.08	0.07	1.26	1.37
https://doi.org/10.1787/888933447230

Switzerland

Table C.53. Comparing Financial Incentives for College Education with Different Financing Scenarios - Switzerland
Single, No Children, 17 Year-Old, Four Years of Education, 70% of the Average Wage					Currency: CHF
Scenario	No Borrowing	Direct Costs Borrowed, Low Interest Rate	All Costs Borrowed, Low Interest Rate	Direct Costs Borrowed, High Interest Rate	All Costs Borrowed, High Interest Rate
Non-Financing Education Costs
Direct Costs of Education	2705	2705	2705	2705	2705
Pre-Tax Scholarship Income	782	782	782	782	782
Income Before Education	60413	60413	60413	60413	60413
Income During Education	22358	22358	22358	22358	22358
Pre-Tax Foregone Earnings	38055	38055	38055	38055	38055
AETR Before Education (%)	8.6	8.6	8.6	8.6	8.6
AETR During Education (Exclusive of Tax Expenditures) (%)	2.8	2.8	2.8	2.8	2.8
Value of Education Tax Credits % of Direct Costs	3.5	3.5	3.5	3.5	3.5
AETR During Education (Inclusive of Tax Expenditures) (%)	2.6	2.6	2.6	2.6	2.6
METR on Foregone Earnings (%)	12.0	12.0	12.0	12.0	12.0
Total Annual Non-Financing Costs of Education (Direct Costs & Foregone Earnings)	35350	35350	35350	35350	35350
Education Financing Costs
Fraction of Costs Borrowed	None	Direct Costs	All Costs	Direct Costs	All Costs
Total Amount Borrowed	0	2705	35350	2705	35350
Interest Rate (%)	NA	0.0	0.0	6.0	6.0
Annual Repayments	0	230	3005	920	12019
Debt Finance Multiplier	1.00	0.59	0.59	1.41	1.41
Returns to Education
Breakeven Earnings Level	69969	69658	65985	70260	73913
AETR After Education (%)	9.8	9.7	9.3	9.8	10.2
Breakeven Earnings Increment	9556	9244	5571	9847	13499
Breakeven Earnings Increment % of Previous Wage	15.8	15.3	9.2	16.3	22.3
METR Breakeven Earnings Increment (%)	17.1	17.0	16.5	17.0	17.1
Marginal Effective Tax Rate on Skills (%)	6.2	5.8	5.5	6.5	6.3
Average Effective Tax Rate on Skills (Assumed 15% Return, %)	17.3	17.8	22.6	16.7	5.6
Average Effective Tax Rate on Skills (Return based on Labour Market Premium, %)	16.1	16.8	22.8	15.4	1.5
Government Costs and Returns
Government Educational Costs	35786	36902	50368	34670	21204
Marginal Returns to Costs Ratio	0.20	0.20	0.24	0.20	0.24
Average Returns to Costs Ratio (Return based on Labour Market Premium)	0.90	0.88	0.64	0.93	1.53
https://doi.org/10.1787/888933447243

Table C.54. Comparing Financial Incentives for Differing Savings-Financed Education Scenarios - Switzerland
Single, No Children, Annual Data							Currency: CHF
Age	17	27	32	40	32	40	50	50
Income Before Education, %AW	70	100	100	100	100	100	100	100
Income During Education, %AW	25	25	25	25	95	95	25	25
Years of Education	4	1	1	1	0.05	0.05	1	1
Education is Job Related	No	No	No	No	Yes	Yes	No	Yes
Financial Costs of Up-Skilling
Direct Costs of Education	2705	2705	2705	2705	7741	7741	2705	2705
Pre-Tax Scholarship Income	782	782	782	782	0	0	782	0
Income Before Education	60413	86305	86305	86305	86305	86305	86305	86305
Income During Education	22358	22358	22358	22358	86089	86089	22358	21576
Pre-Tax Foregone Earnings	38055	63947	63947	63947	216	216	63947	64729
AETR Before Education (%)	8.6	11.2	11.2	11.2	11.2	11.2	11.2	11.2
AETR During Education (Exclusive of Tax Expenditures) (%)	2.8	2.8	2.8	2.8	11.2	11.2	2.8	2.6
Value of Education Tax Credits % of Direct Costs	3.5	3.5	3.5	3.5	3.0	3.0	3.5	0.5
AETR During Education (Inclusive of Tax Expenditures) (%)	2.6	2.6	2.6	2.6	11.0	11.0	2.6	2.6
METR on Foregone Earnings (%)	12.0	14.2	14.2	14.2	21.0	21.0	14.2	14.1
Total Costs of Education (Direct Costs & Foregone Earnings)	35350	56734	56734	56734	7683	7683	56734	58283
Financial Returns to Up-Skilling
Breakeven Earnings Level	69969	90481	90776	91555	86905	87012	93734	93920
AETR After Education (%)	9.8	11.7	11.7	11.8	11.3	11.3	12.0	12.1
Breakeven Earnings Increment	9556	4176	4471	5250	600	707	7429	7615
Breakeven Earnings Increment % of Previous Wage	15.8	4.8	5.2	6.1	0.7	0.8	8.6	8.8
METR Breakeven Earnings Increment (%)	17.1	21.4	21.1	21.4	20.4	20.9	21.4	21.2
Marginal Effective Tax Rate on Skills (%)	6.2	8.7	8.4	8.7	17.5	18.1	8.7	8.8
Average Effective Tax Rate on Skills (Assumed 15% Return, %)	17.3	18.6	18.4	17.8	18.1	17.8	16.2	16.2
Government Costs and Returns
Government Educational Costs	35786	40294	40294	40294	30651	30651	40294	39526
Marginal Returns to Costs Ratio	0.20	0.38	0.38	0.38	0.06	0.07	0.38	0.40
Average Returns to Costs Ratio (Assumed 15% Return)	1.17	1.61	1.49	1.28	0.09	0.08	0.90	0.92
https://doi.org/10.1787/888933447259

Turkey

Table C.55. Comparing Financial Incentives for College Education with Different Financing Scenarios - Turkey
Single, No Children, 17 Year-Old, Four Years of Education, 70% of the Average Wage					Currency: TRY
Scenario	No Borrowing	Direct Costs Borrowed, Low Interest Rate	All Costs Borrowed, Low Interest Rate	Direct Costs Borrowed, High Interest Rate	All Costs Borrowed, High Interest Rate
Non-Financing Education Costs
Direct Costs of Education	136	136	136	136	136
Pre-Tax Scholarship Income	472	472	472	472	472
Income Before Education	14825	14825	14825	14825	14825
Income During Education	5767	5767	5767	5767	5767
Pre-Tax Foregone Earnings	9059	9059	9059	9059	9059
AETR Before Education (%)	9.7	9.7	9.7	9.7	9.7
AETR During Education (Exclusive of Tax Expenditures) (%)	1.0	1.0	1.0	1.0	1.0
Value of Education Tax Credits % of Direct Costs	-6.4	-6.4	-6.4	-6.4	-6.4
AETR During Education (Inclusive of Tax Expenditures) (%)	0.6	0.6	0.6	0.6	0.6
METR on Foregone Earnings (%)	15.2	15.2	15.2	15.2	15.2
Total Annual Non-Financing Costs of Education (Direct Costs & Foregone Earnings)	7326	7326	7326	7326	7326
Education Financing Costs
Fraction of Costs Borrowed	None	Direct Costs	All Costs	Direct Costs	All Costs
Total Amount Borrowed	0	136	7326	136	7326
Interest Rate (%)	NA	0.0	0.0	6.0	6.0
Annual Repayments	0	12	623	46	2491
Debt Finance Multiplier	1.00	0.60	0.60	1.40	1.40
Returns to Education
Breakeven Earnings Level	16875	16860	16047	16891	17704
AETR After Education (%)	10.6	10.6	10.3	10.6	11.0
Breakeven Earnings Increment	2050	2035	1221	2065	2879
Breakeven Earnings Increment % of Previous Wage	13.8	13.7	8.2	13.9	19.4
METR Breakeven Earnings Increment (%)	17.7	17.7	17.7	17.7	17.7
Marginal Effective Tax Rate on Skills (%)	2.0	1.8	2.0	2.1	2.0
Average Effective Tax Rate on Skills (Assumed 15% Return, %)	14.9	15.1	20.1	14.8	4.2
Average Effective Tax Rate on Skills (Return based on Labour Market Premium, %)	11.5	11.7	23.3	11.2	-13.1
Government Costs and Returns
Government Educational Costs	9841	9896	12803	9786	6879
Marginal Returns to Costs Ratio	0.16	0.16	0.21	0.16	0.16
Average Returns to Costs Ratio (Return based on Labour Market Premium)	0.40	0.40	0.31	0.41	0.58
https://doi.org/10.1787/888933447263

Table C.56. Comparing Financial Incentives for Differing Savings-Financed Education Scenarios - Turkey
Single, No Children, Annual Data							Currency: TRY
Age	17	27	32	40	32	40	50	50
Income Before Education, %AW	70	100	100	100	100	100	100	100
Income During Education, %AW	25	25	25	25	95	95	25	25
Years of Education	4	1	1	1	0.05	0.05	1	1
Education is Job Related	No	No	No	No	Yes	Yes	No	Yes
Financial Costs of Up-Skilling
Direct Costs of Education	136	136	136	136	2264	2264	136	136
Pre-Tax Scholarship Income	472	472	472	472	0	0	472	0
Income Before Education	14825	21179	21179	21179	21179	21179	21179	21179
Income During Education	5767	5767	5767	5767	21126	21126	5767	5295
Pre-Tax Foregone Earnings	9059	15412	15412	15412	53	53	15412	15884
AETR Before Education (%)	9.7	12.1	12.1	12.1	12.1	12.1	12.1	12.1
AETR During Education (Exclusive of Tax Expenditures) (%)	1.0	1.0	1.0	1.0	12.0	12.0	1.0	0.7
Value of Education Tax Credits % of Direct Costs	-6.4	-6.4	-6.4	-6.4	18.7	18.7	-6.4	0.0
AETR During Education (Inclusive of Tax Expenditures) (%)	0.6	0.6	0.6	0.6	10.0	10.0	0.6	0.7
METR on Foregone Earnings (%)	15.2	16.2	16.2	16.2	17.7	17.7	16.2	15.9
Total Costs of Education (Direct Costs & Foregone Earnings)	7326	12558	12558	12558	1885	1885	12558	13502
Financial Returns to Up-Skilling
Breakeven Earnings Level	16875	22095	22172	22370	21328	21358	23014	23151
AETR After Education (%)	10.6	12.3	12.3	12.4	12.1	12.1	12.5	12.5
Breakeven Earnings Increment	2050	916	993	1191	149	179	1835	1972
Breakeven Earnings Increment % of Previous Wage	13.8	4.3	4.7	5.6	0.7	0.8	8.7	9.3
METR Breakeven Earnings Increment (%)	17.7	17.7	17.7	17.7	17.7	17.7	17.7	17.7
Marginal Effective Tax Rate on Skills (%)	2.0	1.1	1.1	1.1	-1.2	-1.2	1.1	2.3
Average Effective Tax Rate on Skills (Assumed 15% Return, %)	14.9	14.1	13.8	13.0	4.4	1.7	10.5	10.5
Government Costs and Returns
Government Educational Costs	9841	10963	10963	10963	8405	8405	10963	10491
Marginal Returns to Costs Ratio	0.16	0.25	0.25	0.25	0.05	0.05	0.25	0.28
Average Returns to Costs Ratio (Assumed 15% Return)	0.92	1.14	1.05	0.87	0.07	0.06	0.57	0.59
https://doi.org/10.1787/888933447277

United Kingdom

Table C.57. Comparing Financial Incentives for College Education with Different Financing Scenarios - United Kingdom
Single, No Children, 17 Year-Old, Four Years of Education, 70% of the Average Wage					Currency: GBP
Scenario	No Borrowing	Direct Costs Borrowed, Low Interest Rate	All Costs Borrowed, Low Interest Rate	Direct Costs Borrowed, High Interest Rate	All Costs Borrowed, High Interest Rate
Non-Financing Education Costs
Direct Costs of Education	6031	6031	6031	6031	6031
Pre-Tax Scholarship Income	808	808	808	808	808
Income Before Education	23858	23858	23858	23858	23858
Income During Education	9329	9329	9329	9329	9329
Pre-Tax Foregone Earnings	14529	14529	14529	14529	14529
AETR Before Education (%)	13.7	13.7	13.7	13.7	13.7
AETR During Education (Exclusive of Tax Expenditures) (%)	-12.4	-12.4	-12.4	-12.4	-12.4
Value of Education Tax Credits % of Direct Costs	9.4	9.4	9.4	9.4	9.4
AETR During Education (Inclusive of Tax Expenditures) (%)	-17.6	-17.6	-17.6	-17.6	-17.6
METR on Foregone Earnings (%)	30.5	30.5	30.5	30.5	30.5
Total Annual Non-Financing Costs of Education (Direct Costs & Foregone Earnings)	14830	14830	14830	14830	14830
Education Financing Costs
Fraction of Costs Borrowed	None	Direct Costs	All Costs	Direct Costs	All Costs
Total Amount Borrowed	0	6031	14830	6031	14830
Interest Rate (%)	NA	0.0	0.0	6.0	6.0
Annual Repayments	0	513	1261	2050	5042
Debt Finance Multiplier	1.00	0.58	0.58	1.42	1.42
Returns to Education
Breakeven Earnings Level	27898	27206	26198	28589	29598
AETR After Education (%)	14.6	14.5	14.3	14.8	14.9
Breakeven Earnings Increment	4040	3348	2339	4731	5740
Breakeven Earnings Increment % of Previous Wage	16.9	14.0	9.8	19.8	24.1
METR Breakeven Earnings Increment (%)	20.0	20.0	20.0	20.0	20.0
Marginal Effective Tax Rate on Skills (%)	-6.6	-12.0	-6.6	-2.7	-6.6
Average Effective Tax Rate on Skills (Assumed 15% Return, %)	14.9	18.2	22.7	10.5	-1.0
Average Effective Tax Rate on Skills (Return based on Labour Market Premium, %)	12.6	17.1	22.9	7.0	-8.1
Government Costs and Returns
Government Educational Costs	8724	11262	14966	6185	2482
Marginal Returns to Costs Ratio	0.43	0.40	0.43	0.51	1.05
Average Returns to Costs Ratio (Return based on Labour Market Premium)	1.54	1.19	0.89	2.17	5.40
https://doi.org/10.1787/888933447285

Table C.58. Comparing Financial Incentives for Differing Savings-Financed Education Scenarios - United Kingdom
Single, No Children, Annual Data							Currency: GBP
Age	17	27	32	40	32	40	50	50
Income Before Education, %AW	70	100	100	100	100	100	100	100
Income During Education, %AW	25	25	25	25	95	95	25	25
Years of Education	4	1	1	1	0.05	0.05	1	1
Education is Job Related	No	No	No	No	Yes	Yes	No	Yes
Financial Costs of Up-Skilling
Direct Costs of Education	6031	6031	6031	6031	3429	3429	6031	6031
Pre-Tax Scholarship Income	808	808	808	808	0	0	808	0
Income Before Education	23858	34083	34083	34083	34083	34083	34083	34083
Income During Education	9329	9329	9329	9329	33998	33998	9329	8521
Pre-Tax Foregone Earnings	14529	24754	24754	24754	85	85	24754	25562
AETR Before Education (%)	13.7	15.6	15.6	15.6	15.6	15.6	15.6	15.6
AETR During Education (Exclusive of Tax Expenditures) (%)	-12.4	-12.4	-12.4	-12.4	15.6	15.6	-12.4	-19.3
Value of Education Tax Credits % of Direct Costs	9.4	9.4	9.4	9.4	20.0	20.0	9.4	3.5
AETR During Education (Inclusive of Tax Expenditures) (%)	-17.6	-17.6	-17.6	-17.6	13.6	13.6	-17.6	-21.8
METR on Foregone Earnings (%)	30.5	26.2	26.2	26.2	20.0	20.0	26.2	27.3
Total Costs of Education (Direct Costs & Foregone Earnings)	14830	23010	23010	23010	2811	2811	23010	24417
Financial Returns to Up-Skilling
Breakeven Earnings Level	27898	35689	35793	36040	34292	34322	36677	36835
AETR After Education (%)	14.6	15.8	15.8	15.9	15.6	15.6	15.9	15.9
Breakeven Earnings Increment	4040	1606	1710	1957	209	239	2594	2752
Breakeven Earnings Increment % of Previous Wage	16.9	4.7	5.0	5.7	0.6	0.7	7.6	8.1
METR Breakeven Earnings Increment (%)	20.0	20.0	20.0	20.0	20.0	20.0	20.0	20.0
Marginal Effective Tax Rate on Skills (%)	-6.6	-4.2	-4.2	-4.2	0.0	0.0	-4.2	-3.5
Average Effective Tax Rate on Skills (Assumed 15% Return, %)	14.9	14.3	13.9	13.0	7.7	6.0	10.8	10.5
Government Costs and Returns
Government Educational Costs	8724	10769	10769	10769	3697	3697	10769	10170
Marginal Returns to Costs Ratio	0.43	0.53	0.53	0.53	0.19	0.19	0.53	0.60
Average Returns to Costs Ratio (Assumed 15% Return)	2.06	2.27	2.13	1.86	0.31	0.27	1.40	1.49
https://doi.org/10.1787/888933447298

Note

← 1. Tables for the United States are excluded given the significant differences that are difficult to statistically account for in the cost and how these costs are covered of tertiary education.