Globalization and the return to education in Australia

Reich argues that globalization will increase the relative earnings of thos e whose occupation involves identifying and solving problems and managing i deas. Hence, the return to education, especially education in the form of a university degree, will rise. This paper examines the return to education in Australia in the 1980s and shows that in the private sector there has be en a substantial rise in the relative earnings of graduates. Due to special circumstances there has been a fall in the public sector. Previous finding s of little change are the result of aggregation problems.