INVESTMENT RETURNS ANALYSIS OF EDUCATION IN EAST JAVA

Education is one of the tools in human capital investment because it is considered important in producing an adequate return to schooling. At the East Java Province in 2015 and 2018 the highest education was marked by a difference in the number of each level of education, especially at the tertiary level, which was still relatively low. So, that will be affect return to schooling received by the workforce. This research uses cross section data sourced from SAKERNAS data in 2015 and 2018, with Ordinary Least Square (OLS). The results of OLS in 2015 and 2018 shown if the level of education, age, worked training, worked experience, sex, and location have a significant effect on income. The results of the OLS regression are then used to calculated return to education based on education level, sex, and location. The results shown if the education achieved produce a rate of return that is always increasing at every level of education while return to schooling based on gender is a difference in junior and university education, in rural areas return to schooling at the primary school is higher than in the urban area.Keywords: Gender, Education, Return To Education, LocationJEL: J24, I21

The impact of overeducation on wages of recent economic sciences graduates

According to human capital theory, wages are determined by workers' productivity, in its crudest form implies that return to education does not depend on how workers' skills are used. However, after controlling for other differences, the empirical evidence shows that workers with identical education can be paid differently. The literature has found young people are more likely to experience a mismatch between their formal education and that required for their jobs. While there is no consensus on the reasons for the mismatch, there is one on the consequences in terms of wages; overeducation means a penalty. Our evidence shows that overeducated graduates of the Facultad de Ciencias Económicas of the Universidad Nacional de Córdoba suffer a wage penalty compared to those working in a job that requires a university degree. The results are robust to different specifications and the use of alternative estimators. Even when not statistically significant, the penalty of a severe level of overeducation is higher than one for a mild level of overeducation; having had work experience while studying at university helps to reduce the cost of overeducation; women exhibit a similar penalty to men. While on average overeducation means a wage penalty, there is great heterogeneity among overeducated graduates, with those at the top end of the wage distribution experiencing a much lower penalty, or even a premium in some cases. Finally, while in the case of overeducation we find statistically significant effects, the same is not true of the horizontal mismatch in terms of knowledge.

Socioeconomic mechanisms of myopia boom in China: a nationwide cross-sectional study

ObjectivesTo assess the association between socioeconomic development and the myopia boom in China.DesignNationwide cross-sectional study.SettingWe used data from the China Family Panel Study (CFPS 2010), and the Chinese National Survey on Students’ Constitution and Health (CNSSCH 2010).ParticipantsParticipants included 33 600 individuals and 14 226 families from the CFPS 2010, and 86 199 students aged 7–12 years from the CNSSCH 2010.MeasuresThe main measure was students’ visual impairment (defined as Snellen visual acuity ≤20/25 (0.8) in the worse eye) rate of each province (or municipality or autonomous region); other measures included the Gini coefficient of property, logarithm of average property, Gini coefficient of education, average education duration and return-to-education rate of each province (or municipality or autonomous region). The visual impairment rate was calculated using students’ data, aged 7–12 years, from the CNSSCH 2010. The Gini coefficient of property and logarithm of average property were calculated using the families’ data from the CFPS 2010; the Gini coefficient of education, average education duration and return-to-education rate were calculated using individuals’ data aged 18–44 years from the CFPS 2010.ResultsThe urban environment (coefficient: 0.209; p<0.001), Gini coefficient of property (coefficient: 1.979; p=0.005), logarithm of average property (coefficient: 0.114; p<0.001), average education duration (coefficient: 0.041; p<0.001) and return-to-education rate (coefficient: 0.195; p<0.001) were positively associated with the logit function of visual impairment rate.ConclusionsEconomic development may promote an increased desire to pursue wealth. Regarding high return to education and a fairly competitive education system, individuals are likely to pursue wealth through education, which is associated with a heavier education burden and higher prevalence rates of myopia.

Estimating the economic return to education in Ghana: a gender-based perspective

PurposeThe increasing rate at which individuals, especially, females in Ghana are seeking higher education calls for an estimation of the returns to schooling and education in Ghana.Design/methodology/approachThe study employs the Mincer equation to a representative cross-sectional micro-data from Ghana using OLS and instrumental variable (IV) methodologies. The paper uses spouse's education as instruments in the IV estimation.FindingsReturn to schooling was found to be higher for females than males, likewise, membership of an old student associations and location of the household. Returns to education increases as the level of education rises whilst the rate of returns initially increases but fall as labour market experience rises. The study also found that the rates of return to education were higher for Christian, followed by Muslim and believers of other lesser-known religion in Ghana.Research limitations/implicationsReturn to schooling was found to be higher for females than males. Likewise, individuals who are members of an old student association and are in urban areas were found to have a higher return to schooling than individuals who are not members of an old student association and are in rural areas. Returns to education increases as the level of education rises whilst the rate of returns initially increases but fall as labour market experience rises. The study also found that the rates of return to education were higher for Christian, followed by Muslim and believers of other lesser-known religion in Ghana.Practical implicationsWage determination process is different for males and females, across religion and residency. The higher returns to schooling for females imply education is a good investment for women and girls and should be a development priority.Social implicationsThe higher returns to schooling for females imply an investment in girl's education should be a development priority.Originality/valueThe paper extends the existing literature by focussing on the role of religion, old student's association (alma mater) and gender on the differential earning returns to schooling.

Pandemic will worsen Latin American education outlook

Significance As of October 2020, only 13 countries in the region had fully reopened schools, UNICEF says. While in other parts of the world schools have gradually returned to in-classroom learning, in LAC many schools still remain closed. Impacts The longer schools remain closed, the more likely vulnerable individuals will never return to education. Families in the informal sector will struggle to send their children back to school given the expense it represents. Increasing education budgets will be essential post-pandemic but will be a challenge given soaring fiscal deficits.

Return to education and labor market in Cambodia: evidence form labor force survey 2012 and CSES 2014

This paper mainly estimates the returns to education employing the standard Mincerian function using the latest Cambodian labor force survey 2012, where the dependent variable is the natural logarithm of earnings and independent variables include years of schooling or educational attainment and potential experience. The paper also examines the effect of foreign language skills on earnings. This paper is divided into three sections. The first section examines Cambodia’s labor markets. The second section explores the econometric model, in particular, Mincerian function to estimate returns to education using the latest labor force survey conducted in 2012. We find that for employed persons with an educational level lower than or equal to grade 12 it is about 3.3 percent; but it is higher for males. The annualized rate of return to education for undergraduate level was approximately 17 percent. Regarding language skill, we find that people who hold a bachelor degree and can speak English can earn more than those who can speak only Khmer language. There is also a significant wage gap between bachelor holders and high school certificate holders at a ratio of 1.9.

The Return to Education in the Mid-Twentieth Century: Evidence from Twins

What was the return to education in the United States at mid-century? In 1940, the correlation between years of schooling and earnings was relatively low. In this article, we estimate the causal return to schooling in 1940, constructing a large linked sample of twin brothers to account for differences in unobserved ability and family background. We find that each additional year of schooling increased labor earnings by approximately 4 percent, about half the return found for more recent cohorts in twins studies. These returns were evident both within and across occupations and were higher for sons from lower socio-economic status families.