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Since the second half of the 1990s, the decline in academic standards in mathematics and science among undergraduate students in Japan has been noted. Despite this, problems in science education have become increasingly severe, and their impact is having a mounting effect on Japan's economy. This paper studies the return to a university education in Japan by taking into account the relative ranking of the universities. We present an empirical analysis of how annual income differs depending ondoi:10.6000/1929-7092.2013.02.1 fatcat:6ixaxcy2r5gphixw2gjxzbegve