Chapter 3analysis. So what is the direct impact of extra education per
se on how much we enjoy our lives?
The measure of education we use in the BCS is qualifica-
tions. The BCS tell us the highest qualifications that a person
has achieved. There are altogether five levels of qualifica-
tions,^4 but we need to create a single continuous variable.
So we weight each qualification by the weight it attracts in
a wage equation.^5 This is the index of qualifications that
we use for the BCS. We always present it in standardized
form. In the household panel studies we measure education
more simply by years of full- time education and confine the
analyses to people under 65. For purposes of translation one
standard deviation of qualifications is approximately equal
to 2.5 years of schooling.^6
Figure 3.1. Highest educational attainment of the adult population in advanced
countries (%)
100908070605040302010(^01950196019701980)
Year
1990 2000 2010
Tertiary
Pe
rcen
t
Secondary
Primary
No schooling