Page 359 - Štremfel, Urška, and Maša Vidmar (eds.). 2018. Early School Leaving: Contemporary European Perspectives. Ljubljana: Pedagoški inštitut.
P. 359
why is esl a problem for contemporary (eu) society?
Table 3. Review of studies presenting financial gains expected from the reduction of ESL
Country Total cost of ESL to the country Explanation
If ESL could be cut in half for one age
cohort, the country would gain about
0.7% of GDP, equalling EUR 113.8 mil-
Estonia lion using a 3% discount rate, or about The figures refer to the cost of ESL
0.35% of GDP, equalling EUR 56.6 mil-
lion using a 6% discount rate
Hungary Increasing the education level of Roma
children from having at most prima- The gains consist of taxes after income
ry-level education to an upper secon- and consumption, and social security
dary qualification would see a gain of payments. They exclude costs related
income of some EUR 30,000 – 70,000 to unemployment and offending.
per person for the state
Netherlands Savings from reducing ESL for 15,000 38% deriving from additional taxati-
individuals made over a 5-year peri- ons, 12% from reduced subsidies, 1.4%
od could reach nearly EUR 3.7 billi- from less criminal activity, 0.5% from
on in total better health
Norway If the ESL rate could be cut by one-t- The figures refer to ESLers and exclude
hird, the total costs for society wou- crime and health-related costs
ld be reduced by NOK 5.4 billion (aro-
und EUR 723 million) per age cohort.
The top estimate of the reduced soci-
etal costs is NOK 8.8 billion (around
EUR 1.2 billion), while the lower bo-
und is NOK 1.1 billion (around EUR
146 million)
Spain By reducing ESL, an increase in GDP Effects on employment and wages by
of 4% to 17% could be achieved over a eradicating ESL are taken into acco-
20-year time horizon. unt.
United Kingdom Estimates of the public finance cost All the UK figures relate to the cost
of young people who are NEET vary of being NEET (young people not in
from GBP 12 billion to GBP 32.5 bil- employment, education or training,
lion aged 16 and 18)
Resource costs associated with NEET
range from just under GBP 22 billion
to nearly GBP 77 billion
In the UK, if 1% more of the working
population had A-levels rather than
no qualifications, the benefit to the
UK would be around GBP 665 million
a year through reduced crime and in-
creased earnings potential
Sources: Calero & Gil-Izquierdo (2014); European Commission (n.d.); Nevala & Hawley
(2011)
359
Table 3. Review of studies presenting financial gains expected from the reduction of ESL
Country Total cost of ESL to the country Explanation
If ESL could be cut in half for one age
cohort, the country would gain about
0.7% of GDP, equalling EUR 113.8 mil-
Estonia lion using a 3% discount rate, or about The figures refer to the cost of ESL
0.35% of GDP, equalling EUR 56.6 mil-
lion using a 6% discount rate
Hungary Increasing the education level of Roma
children from having at most prima- The gains consist of taxes after income
ry-level education to an upper secon- and consumption, and social security
dary qualification would see a gain of payments. They exclude costs related
income of some EUR 30,000 – 70,000 to unemployment and offending.
per person for the state
Netherlands Savings from reducing ESL for 15,000 38% deriving from additional taxati-
individuals made over a 5-year peri- ons, 12% from reduced subsidies, 1.4%
od could reach nearly EUR 3.7 billi- from less criminal activity, 0.5% from
on in total better health
Norway If the ESL rate could be cut by one-t- The figures refer to ESLers and exclude
hird, the total costs for society wou- crime and health-related costs
ld be reduced by NOK 5.4 billion (aro-
und EUR 723 million) per age cohort.
The top estimate of the reduced soci-
etal costs is NOK 8.8 billion (around
EUR 1.2 billion), while the lower bo-
und is NOK 1.1 billion (around EUR
146 million)
Spain By reducing ESL, an increase in GDP Effects on employment and wages by
of 4% to 17% could be achieved over a eradicating ESL are taken into acco-
20-year time horizon. unt.
United Kingdom Estimates of the public finance cost All the UK figures relate to the cost
of young people who are NEET vary of being NEET (young people not in
from GBP 12 billion to GBP 32.5 bil- employment, education or training,
lion aged 16 and 18)
Resource costs associated with NEET
range from just under GBP 22 billion
to nearly GBP 77 billion
In the UK, if 1% more of the working
population had A-levels rather than
no qualifications, the benefit to the
UK would be around GBP 665 million
a year through reduced crime and in-
creased earnings potential
Sources: Calero & Gil-Izquierdo (2014); European Commission (n.d.); Nevala & Hawley
(2011)
359
