An OECD study has found New Zealand university students pay a larger than average share of their study costs and get less return on their investment during their careers.
The Education at a Glance report showed a tertiary qualification had little bearing on employment prospects in New Zealand, The Dominion Post reported.
Those who gained a diploma or higher qualification were rewarded with just a "relatively slim" salary boost of between 15 and 25 percent over those who went no further than college.
In other countries the difference was much greater -- Hungarian degree holders earned about twice as much as their degree-less counterparts -- and the gap was widening.
Back in New Zealand the study found that even when it came time to apply for a job there was little advantage to be gained as Kiwis showed the lowest variation in employment rates between those with and without degrees.
The Education Ministry said the trend was not due to low-quality tertiary education. Rather it was because of the country's record-low unemployment rate.
Victoria University vice-chancellor Pat Walsh said tertiary education opened the door to a wider range of opportunities and graduates' incomes grew throughout their careers while others plateaued.
On a positive note, New Zealand had a high proportion of graduates with 38 percent versus the OECD average of 27 percent.
OECD secretary general Angel Gurria said the challenge for many countries was coping with increased demand while also increasing the quality of institutions.
"That will require not just increased resources but changes in the way money is spent."
The report said individual countries were reacting in different ways.
Nordic countries accepted high public spending on education as an investment "that pays dividends to both individuals and society". Others -- including New Zealand, Australia, Britain, USA, Canada, Korea and Japan -- had expanded university populations by making students pay a larger share of the costs.
