POSITIVE AND NEGATIVE IMPACT OF INCREASED TERTIARY ATTAINMENT Alena Bušíková, M.B.A. Vysoká škola manažmentu 25 th September, 2012

C ONTENT Benefits and costs of education Rate of return on investment in education Increased tertiary education across the EU countries Analysis of the increased tertiary attainment for Slovakia Conclusions and recommendations

GOAL To evaluate the positive and negative impact of increased tertiary attainment on an example of Slovakia

B ENEFITS OF EDUCATION Average income of an educated person is higher than the average income of a less educated individual The chance of becoming unemployed is lower with a higher level of education The crime rate diminishes with an increased level of education The family planning is more coordinated with a higher level of education The productivity of an educated individual should be higher and subsequently, the GDP of the economy should be higher

C OSTS OF EDUCATION Private: fees, out of pocket expenses for textbooks, travel, accommodation, opportunity costs Public: payments for buildings, electricity, faculty, librarians, and administrators plus opportunity costs

R ATE OF RETURN : P UBLIC AND PRIVATE NPV IN SELECTED COUNTRIES FOR TERTIARY EDUCATION Source: Education at a Glance, 2010

I NCREASED TERTIARY EDUCATION ACROSS THE EU COUNTRIES ATBEBGCYCZDEDKEEELESFIFRHU ,3 IEITLTLULVMTNLPLPTROSESISK ,740 Support for increased tertiary attainment from European Strategy Europe 2020 as one of its main goals is to have the share of people aged completing tertiary education at least 40% by 2020 National Programs Source: Strategy Europe 2020

T HE PERCENTAGE OF TERTIARY EDUCATED PEOPLE AGED 30-34: SELECTED COUNTRIES Source: own computation based on the date from Eurostat

A NALYSIS OF INCREASED TERTIARY ATTAINMENT FOR SLOVAKIA Source: own computation based on the Statistical Office of the Slovak Republic

P ROBLEMS ACCOMPANYING THE INCREASE OF TERTIARY EDUCATED PEOPLE FOR SLOVAKIA Increase in the numbers of teachers did not keep up with the increase in the student population The funding for both tertiary education and research has been declining The results of our surveys are rather critical of the increased numbers of students - Teachers – 1,314 respondents - Employers – 242 respondents

T EACHERS ’ SURVEY : Source: own survey (1387, 1395 and 1404 respondents)

E MPLOYERS ’ SURVEY : Source: own survey (279, 274 and 274 respondents)

THANK YOU FOR YOUR ATTENTION Contact: Alena Bušíková, M.B.A. City University of Seattle/Vysoká škola manažmentu v Trenčíne