Economic Returns to Schooling Decisions. AIR Forum 1979 Paper (original) (raw)

Investment Returns to College Education in the United States

Journal of international business and economics, 2017

The research examines the earnings of associate's degree versus bachelor's degreeholders in the U.S. A panel dataset on the number of graduates from the two modes of educationfor fifty states and Washington D.C.during 2004-2012is used.The results show that there is no statistical difference between the two levels of education. The paper then report the results from a non-regression approach of calculating thefinancial costs of attending two more school years and opportunity cost of income. The financial costs areaverage income forgonedivided by the number of yearsand subtracted from the average per capita income. The results confirm the regression results that these adjusted per capita incomes for the two levels of education appear not to be statistically different from each other for any time horizon between nine to twelve years. For the time horizon less than nine years, the adjusted per capita income of a bachelor's degree holder seems to be lower than that of an associate's degree holder.

How large are returns to schooling? Hint: Money isn't everything

2009

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Analysis of economic benefits of education

Summary The study, which analyzes the economic benefits of education, divided into three parts. The first section gives a brief theoretical explanation of the variables that are used in this paper to analyze the importance of human capital and the educational system and economic benefits to society can bring. The second section presents the methodology and explains the data used for research and analysis on countries of the world. Variables used in the work and analyzes have been primarily, gross domestic product per capita and relative earnings of the population with income from employment (2010 or latest available year) by level of educational attainment in three kategories: below upper secondary education, post – secondary non – tertiary education and all tertiary education. Data refer to the academic year 2009/2010 and are based on the UOE data collection on education statistics administered by the OECD in 2010. Gross domestic product per capita (GDP p.c.) represent economic development of countries. The third part gives an analysis and interpretation of results of studies showing the impact analysis of different levels of income realized by the employees according to different degrees, or education level. The study aims to test the hypothesis that investment in education has a positive and significant impact on the economic development of countries. The study also aims to test the hypothesis that people with higher education or with higher educational attainment, generally achieve significantly higher rates of return through income from his salary and that investment in education is positively and significantly affects the level of their salaries.

Estimating the Financial Return to Education Between Fields of Study

Studies by Undergraduate Researchers at Guelph, 2019

The Mincer regression equation was utilized to compute the expected financial return to education from additional years of education across the 2016 Canadian population. Data was taken from the 2016 Canadian Census of Population to create the populations of interest. Three subpopulations were then derived from the collected data to represent Canadians with different major areas of study, namely business, humanities, and engineering. Mincerian regressions were run using these subsections to determine how the financial return to education differs between distinct majors. Additional multiple regressions included an interaction term between sex and years of schooling in an attempt to determine whether an individual's sex affects their expected return to education given a specific area of study. The regression results indicate that business majors boast the largest average expected return to education, while engineering majors boast the lowest. Subsequently, in relation to business majors, sex is not found to have an impact on expected financial returns. Future research may add to the findings in this paper by expanding the scope to include all areas of study in addition to deciphering whether the expected return to education for a given major is consistent throughout all major Canadian universities.

Returns to Education --A Study from the perspective of micro-level human capital investment decision

The important corollary to our argument, in favour or otherwise, points out a well-structured human behaviour at the time of deciding for undergoing a chalked-out educational input or not. This pertains, in this regard, to examining the micro-level individual’s decision-making process. A cob-web of exogenous and endogenous factors influences such a decision-making process. It is difficult to pinpoint how it is being shaped at different stages of deciding on educational inputs, yet the general process is objectively outlined. Different facets of an individual’s behaviour – (a) process of learning, choosing the stage-wise course of educational inputs, cost aspect thereof and (b) patterns of returns to educational achievements are broadly outlined in two sections. The synthetic approach such as this is purely based on hypothetical deductions of an individual’s decision-making process at the micro-level. Detailed work based on such deductions may help to quantitatively justify their validity. Different facets of an individual’s behaviour as a preliminary exercise, in this regard, are discussed. Section I centres on a typical household level (micro level) behavioural aspect of the family head while responding to human capital investments for ‘wards’ up to their graduation level and beyond (in part or otherwise) and of an individual’s behaviour towards the add-on educational inputs. Notional private education costs up to graduation level borne by the family and during post-graduation level borne by either the family or the individual are worked out. The hidden cost of education borne by the family in terms of up-keeping sundry related costs of education and that of the state and the government in terms of providing educational infrastructure are enumerated. Section II examines in detail micro-level human capital investment decisions at the household level, factors influencing such decision–making process, measuring actual private returns to education in monetary and non-monetary terms, considerations regarding work-life earnings for the active period of work engagement from the perspective of these contexts, factors influencing returns to education corresponding to stage-wise educational inputs, price of labour service inputs, productivity changes and contra returns to education.

The Social Returns to Education: A Review

The International Journal of Humanities & Social Studies, 2020

People invest in education with the hope that they will reap future benefits. This belief that education has future benefits has generated debates over the years and questions have been raised about the quantum or net worth of these investments over the years. Other questions have been asked on what constitutes'return to education' and what are the reasons for which educated people tend to experience better standards of living than less educated people. Others just focus on what the benefits thereof are from acquiring a level of education. Acemoglu and Angrist (1999); Psacharopoulos (1994) and Vedder (2004) have worked on the benefit derived from investments in education in different countries, across different educational levels and sectors of society and over different time frames. Each country strives to grow and develop over a while, human capital has seen as a way to go in the development process. Every society in one way or the other has benefitted from investments made in education. The extent to which this investment made has yielded some benefits, how these benefits are measured and the magnitude of these investments is what has necessitated the writing up of this review. On the average income distribution of individuals differs across jobs, sectors and countries, with education, knowledge and skills acquired accounting for this difference. Generally, the more skilled you are the higher your ability to perform on the job. A lot of progress has been made in finding what the returns or benefits derived from investments in education over a given period (