Abstract
This study aims to measure the economic rate of returns for investment in KSA. by using both basic and extended Mincerian Earnings Function. In addition to this, the comparison had been established between the results obtained and those of other researches in the same domain. We adopted in the research the model of Mincer in evaluating the rate of the economic returns according to previous classifications and the effective experience got by the individual in the work (measured by years). The result of the model application states that the economic return of university education in KSA has been improved by 10.35% based on the benchmark of Psacharopoulos International Return measured by 9.6%.Keywords: The individual Return, Earnings Function, Practical Experience, Theoretical ExperienceJEL Classifications: I26, J24, J16.DOI: https://doi.org/10.32479/ijefi.8659
Highlights
Countries over the world paid particular attention to the education sector in general and higher education in particular, in order to achieve their objectives
The analyses reveal most common applied method in this field that tackle the estimation of the functions based on the dependent variable, and the independent variable is represented by the years spend in education enrollment as it is shown by the following model: International Journal of Economics and Financial Issues | Vol 9
The rate of return of education for the total sample is 10.35%. It is higher than the rate of return that Psacharopoulos got in his study which is 9.6%
Summary
Countries over the world paid particular attention to the education sector in general and higher education in particular, in order to achieve their objectives. The objective of the measurement approach is to rationalize the economic and educational decisions in the community (Cunda and Miller, 2014; Yousapronpaiboon, (2014) In this context, the famous model presented by Mincer (1974) called ‘Mincerian Earnings Function,’ made possible the estimation of the rates of return to education within and cross-countries (Psacharopoulos, 1995; George Psacharopoulos and H.A. Patrinos, 2004). The analyses reveal most common applied method in this field that tackle the estimation of the functions based on the dependent variable (logarithm of wages or income), and the independent variable is represented by the years spend in education enrollment as it is shown by the following model: International Journal of Economics and Financial Issues | Vol 9 Issue 6 2019. The private rates of return to these levels of education could be calculated as follows: rPRIM
Sign-in/Register to view highlights & summary Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callMore From: International Journal of Economics and Financial Issues
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
