Educational attainment strongly influences labour market participation, whether measured by employment, unemployment or inactivity rates. Across OECD countries, individuals aged 25-34 without an upper secondary degree show an average employment rate of approximately 60%, while those with a tertiary qualification exhibit an 86% employment rate. Conversely, unemployment rates drop from 13% to 5%, and inactivity rates decrease from 31% to 9% for the same age group. This correlation between educational attainment and labour market participation remains consistent for both genders and has remained stable over decades, even with a substantial rise in attainment levels across the OECD.
Education economic and social outcomes
Higher educational levels help unlock a world of economic and social advantages. The benefits extend far beyond the individual, aiding governments and societies as a whole. Governments can offset the costs associated with education investment through additional tax revenues and social contributions from higher-paid workers, who often have greater educational attainment.
Key messages
Full-time workers with upper secondary or post-secondary non-tertiary degree earn about 25% more than those without such qualifications, on average across OECD countries. The premium for completing a tertiary degree is much higher. Full-time tertiary-educated workers in OECD countries earn on average almost twice as much as those with below upper secondary attainment.
While perceptions about democracy remain consistent across educational levels, civic engagement tends to rise with higher educational attainment. For instance, highly educated adults are more inclined to participate in public demonstrations or volunteer for charities. In OECD and accession countries surveyed in the European Social Survey (ESS) Round 10, approximately 10% of individuals with tertiary education participated in a demonstration 12 months prior to the survey, compared to 6% of those with upper secondary or post-secondary non-tertiary education.
Context
Employment rates by educational attainment
Higher educational attainment enhances employment prospects, with rates varying based on the orientation of the programme pursued. Across many OECD countries, among 25-34 year-olds with upper secondary or post-secondary non-tertiary qualification, individuals with vocational qualifications tend to enjoy higher employment rates compared to those with general qualifications.
Employment rates of 25-34 year-olds, by educational attainment and programme orientation (2019)
Relative earnings by educational attainment
Higher levels of educational attainment bring earnings advantages. Full-time workers with upper secondary or post-secondary non-tertiary attainment earn 29% more than those below upper secondary attainment, on average across OECD countries. The premium is much higher among tertiary graduates, who typically earn almost double the income of individuals with below upper secondary education across the OECD.
Relative earnings of 25-64 year-old adults, by educational attainment (2020)
