Abstract
Abstract The paper investigates the economic benefits and costs of higher education as these are perceived by higher education candidates and labour market entrants in Cyprus. It provides further evidence on the topic after a similar study which preceded the present project by 10 years. Perceived rates of return to education are presented for two points in time, namely, 1993 and 2003. The findings point to an increasing awareness of the link between education and earnings on the part of young people, which can be linked to the country's economic development. The main influences on the respondents’ expected lifetime earnings are examined through multiple regression analysis. Gender and ability are found to be significantly related to expected earnings.
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