The highly qualified generate more profit to companies
It is easy for the highly educated to become worth their weight in gold in the national accounts. The extra effect of having obtained an education is up to DKK 90,000 a year for a short technical education to more than DKK 1,000,000 for a long-cycle higher education within health science or social science. These computations have been made by the Center for Economic Business Research from Copenhagen Business School for the Association of Danish Lawyers and Economists.
Value=18 x Danish Royal Opera House
If the Danish educational level rises to a top 5 ranking in the OECD, the computations show that the gross domestic product can increase by as much as three per cent or DKK 43 billion. With this amount of money, each of the 18 largest cities in Denmark could buy a copy of the Danish Royal Opera House.
The survey defines the highly educated broadly and includes both short-, medium- and long-cycle higher education. To exemplify the value of higher education, the report mentions that a family who buys and renovates an old house, adds extra value by hiring a trained electrician to route the cables. Similarly, a company who acquires foreign competitors adds extra value if their specialised lawyers are able to see through contractual quibbles.
The ripple effect
According to the analysis, the benefit of more education is made up in intrinsic effect and extrinsic effect. The first effect is the extra money that a family or company receives by using highly educated people and evident as a wage premium paid to the worker, while the extrinsic effect is the extra money added in total to society in the shape of productivity, increased competition and growth.