As a result of these challenges, many students may reconsider their investment in university education. If they do, then perhaps they should look to the Mincer equation, which provides estimates of the average monetary returns of one additional year of education. Mincerian results are comparable, so individuals can use them to help guide their decisions about how much schooling they should invest in.
Recent studies using the Mincer equation have suggested that tertiary education, as opposed to primary education, now provides the greatest returns to schooling – a significant reversal seen worldwide (see figure).
On average, another year of education produces a private rate of return to schooling in excess of 5−8% a year. As such, there are few better investments an individual can make.
This has important implications, as it results in an increase in demand for tertiary education and puts pressure on policymakers to expand university education. This should not, however, come at the detriment of basic education, since primary education is a fundamental human service, and access to primary (and secondary) education is a prerequisite for entry into university.
As students adapt to the ‘new normal’ in a pandemic world, tertiary education is still likely to be a worthwhile investment for individuals as well as governments.
The researchers in Denmark conducted an observational study of more than three million Danish children born from 1997 to 2014 and followed them for asthma onset and persistent wheezing from ages 1 to 15 years.
Despite universal basic income (UBI) being present in the policy debate for more than two decades, its evaluation still suffers from the popularity of a variety of mistaken perceptions or interpretations.