ABSTRACT
There are large costs to nations if education systems fail to be inclusive. This chapter presents the results of an analysis based on experiences in Australia. It estimates the fiscal and social costs associated with both early school leaving and not being actively engaged in post-school work and study. The approach to calculating costs creates lifetime economic profiles for early leavers in comparison to those who completed year 12 or equivalent qualifications and for disengaged young people in comparison to those in study or work. Estimates of annual and lifetime (working age) costs are derived in areas of health, government assistance, crime, earnings and employment. The results point to large losses in fiscal and social terms. All else being equal, the losses across the working life for a single cohort of early school leavers extrapolates to $32.3 billion in social costs and over $15.6 billion in fiscal costs. Losses associated with being disengaged from work and study at age 24 are greater: over $20.7 billion dollars in costs to the government and $59.2 billion dollars in social costs. The high costs of an education system that fails to support all young people acquire the skills needed to thrive, point to both the need for educational reform to improve the inclusiveness of schools and the extent to which it will burden the nation if nothing is done.
