Human capital accumulation: education and immigration

Abstract

Education and immigration are examined and affirmed as drivers of sustainable productivity growth. In education, individuals see continuing benefits to educational investment, a view supported by individual rates of return from education. Private sector expenditure on education has increased substantially, Australia’s public/private funding mix conforming to the OECD average. An expansion of migration is possible without unacceptable reduction in skill composition and may enhance Australian human resources development. The migration program should be set to underpin a 1.25 per cent population growth path and be focused on ‘smart’ growth and not just growth in numbers.