Returns to Education: Advanced Mincer Equation on a Sample from the U.S. (Essay Sample)

Returns to Education: Advanced Mincer Equation on a Sample from US
Student Exam Number
INTRODUCTION
A person's level of education has an influence on his or her economic success, health, family stability, and social connections. The usefulness of education as a predictor of better performance is called into question by stratification and selection theories (Reynolds & Ross, 1998). The fact that schools and colleges chose who stays and who goes led many to believe that education had little practical value. However, this was not the case. The evidence is increasingly weighting in favour of substance over bias and selection, according to the evidence. People may get a variety of benefits from investing in their education. Individuation and demographic groupings have varied degrees of direct educational influence on one another and on society as a whole.
Individuals and groups that are less likely to attend college are more likely to be influenced by a degree than are typical college students themselves (Campbell, 2006). In accordance with a modest but growing body of research on the social returns to education, extending educational possibilities benefits not just communities, but also governments and countries as a whole; in some estimates, the social returns to education outweigh the private benefits.
The rate of return on education investment is the same as the rate of return on any other form of investment. It is a description of the investment's expenses and benefits over time, shown as an annual percentage yield, in the same way that savings accounts or government bonds are reported (Psacharopoulos & Patrinos, 2018). Human capital theory has been used to examine the returns on investment in education since the late 1950s. Investments in education, according to human capital theory, boost future productivity.