The efforts people make to continue education after compulsory schooling can be thought of as an investment with the potential to bring rewards in the form of future financial returns. People invest in education in several ways: directly, through the payment of tuition fees, for example, and indirectly, by sacrificing potential income when they are in college and not in work. As with any investment, a rate of return can be calculated. In this case, the rate of return is driven mainly by the reality that people with higher levels of education earn more (see Figure 2.1) and are more likely to be in work (see Figure 2.2). Where the rate of return is high, it implies a real financial incentive for people to continue their education. In terms of public policy, it may also indicate a scarcity of highly educated people in the labour force. Policy responses may include widening access to education and making greater use of loans, rather than direct subsidies, to fund higher education.