How To Measure The Economic Return Of Education

Abstract

This research aims to explain the different ways to measure the economic return from education by comparing individual and social incomes with the educational levels of individuals. There are many methods that can be used to measure the economic return from education, the most important of which are the simple correlation method, the residual income method, and the direct rate of return method for education. The descriptive analytical approach was used to measure the economic return from education and to analyze the return and cost of education. There are many studies that have attempted to measure the economic return from education with the aim of determining the economic value of education represented by the income or wage that the educated individual receives, is this income primarily due to education or are there other factors that affect income generation. Previous studies in measuring the economic return from education have reached important results, a higher level of education leads to increased productivity and higher income. Through analyzing the return and cost of education, the economic return from education is greater than the expenditure on it, and its investment return may exceed many other economic projects. Education also has a social return, both for individuals and society.