Premium on Fields of Study: The Returns to Higher Education in Singapore

Yeo Khee Yong, Toh Mun Heng, Shandre Mugan Thangavelu and James Wong
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Yeo Khee Yong: Ministry of Manpower, Singapore, NUS

Microeconomics Working Papers from East Asian Bureau of Economic Research

Abstract: In summary, the returns to investment in education in Singapore tend to increase with years of schooling, with the returns to tertiary education generally higher than those for non-tertiary education. This is similar to the findings for other Asian newly industrialised economies like South Korea and Hong Kong. As the structure of Singapores economy shifts towards higher value-added and knowledge activities, there will continue to be an increase in the demand for skilled and educated human capital. We can thus expect the demand for workers with tertiary education to increase, which implies that the rate of returns to tertiary education is likely to remain high and above those for secondary and below education. Education will hence continue to be an attractive investment for individuals.

Date: 2007-01
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