A note on the rate of return to investment in education in Belgium

Internal rates on return to investment in higher secondary, university and non-university higher education in Belgium (1992) are presented. Private, social and fiscal returns are distinguished. Private and social returns are low for secondary education, but substantially higher than long-run returns of investment in physical capital. Returns for females are systematically higher than those for males. A remarkable finding is that social returns are higher than private returns, indicating a net-tax on educational investment rather than a net-subsidy. Fiscal returns are particularly high for tertiary education implying no reverse redistributive effects.