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).
|