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This report is the companion to the 1997 'Education at a glance: OECD indicators' (indexed at TD/INT 53.65), and seeks to analyse the data from those indicators as it relates to a few key policy areas. The report is divided into five chapters: 'Expenditures on education' which compares economic factors such as countries' overall spending per pupil and teachers' salaries; 'Lifelong investment in human capital' which examines education and earnings, and rates of return to education; 'Literacy skills: use them or lose them' which discusses the 'organic' nature of literacy and how it changes and develops over the life span; 'Failure at school; patterns and responses' which examines factors such as social background and gender that continue to influence student achievement, and emphasises the need for policy makers to review their education systems with regard to under-achievement; 'Responding to new demand in tertiary education' which discusses recent developments in tertiary education such as the widening of vocational or professional studies, and the creation of alternative pathways to tertiary study. The report includes a statistical annex.