<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>The study aims to update the well-settled issue in literature of rate of return on investment in higher education in Europe. The proposed approach slightly modifies the existing methodology based on the Mincer equation, using an updated set of data for the period 2014–2016 from the European Central Bank's ‘Household Finance and Consumption Survey’. The results obtained, ranging between 13% and 21%, are higher compared to historical records for the years 1996–2013. As for the microeconometric estimates of the Mincer-type equation, they are sound and comparable, although showing higher margins in relation to the recent figures. Thus, they may suggest an increasing trend in valuation and importance of human capital based on high school degree, especially for the Central–Eastern European Union countries, resulting probably from rapid economic and cultural convergence.</p>
</abstract>

The study aims to update the well-settled issue in literature of rate of return on investment in higher education in Europe. The proposed approach slightly modifies the existing methodology based on the Mincer equation, using an updated set of data for the period 2014–2016 from the European Central Bank's ‘Household Finance and Consumption Survey’. The results obtained, ranging between 13% and 21%, are higher compared to historical records for the years 1996–2013. As for the microeconometric estimates of the Mincer-type equation, they are sound and comparable, although showing higher margins in relation to the recent figures. Thus, they may suggest an increasing trend in valuation and importance of human capital based on high school degree, especially for the Central–Eastern European Union countries, resulting probably from rapid economic and cultural convergence.

Internal Rate of Return on Investment in Higher Education in Europe

Wroclaw Review of Law, Administration & Economics

This work is licensed under the Creative Commons Attribution 4.0 International License.

{"article-title":"Internal Rate of Return on Investment in Higher Education in Europe"}

The study aims to update the well-settled issue in literature of rate of return on investment in higher education in Europe. The proposed approach slightly...

Internal Rate of Return on Investment in Higher Education in Europe

Published Online: Sep 09, 2021

Page range: 1 - 19

DOI: https://doi.org/10.2478/wrlae-2021-0010

Keywords
higher education, internal rate of return, European Union, Mincer wage equation

© 2021 Janusz Jablonowski, published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Internal Rate of Return on Investment in Higher Education in Europe

Published Online: Sep 09, 2021

Page range: 1 - 19

DOI: https://doi.org/10.2478/wrlae-2021-0010

Keywordshigher education, internal rate of return, European Union, Mincer wage equation

© 2021 Janusz Jablonowski, published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Keywords
higher education, internal rate of return, European Union, Mincer wage equation