Introduction

Although investment in human capital cannot be reduced only to investment in education, formal education does play a central role, and it is particularly interesting due to the crucial role of public intervention, which includes, among other things, the choice of the education system implemented in the country. The level of education has been identified as one of the most important engines of economic growth and has been seen as an important factor affecting many dimensions of social life, including the structure and dynamics of the family, and fertility patterns. Changes in the skill premium also affect income distribution and inequality in a country. From the viewpoint of policy, it is worth remembering the role attributed by the 2000 meeting of the European Council in Lisbon of the contribution of education and training towards the stated goal of making ‘Europe the most competitive and dynamic knowledge-based economy in the world, capable of sustainable economic growth with more and better jobs and greater social cohesion’ (European Commission, 2001: 3). The subsequent Report of the Education Council to the European Council, The Concrete Future Objective of Education and Training Systems (2001), states three main objectives: increasing the quality and effectiveness of education and training systems in the European Union (EU); facilitating the access of all to the education and training systems; and opening up education and training systems to the wider world. These are only some of the issues behind the active discussion of the levels and dynamics of investments in education, and their returns. The obvious motivation for the interest in a disaggregate analysis by gender is related to the disparities in earning profiles for men and women, confirmed in most of the countries. The wage profiles differ for many reasons. For instance, education attainments, length of active life, unemployment rates and unemployment benefits vary by gender. Public policies can affect differently the incentives to invest in education and to participation in the labour market of men and women. All these policies, in particular the initiatives promoting the reconciliation of working and family life, differ greatly across countries, even within the EU, and emerge as a core concern of governments.

While theoretical analysis has been progressing, together with an increasing amount of empirical research, there are still many open questions. How does gender affect returns on education?