ROI of education: how economists estimate it + US economic update - EP152

Do you get a return on investment if you get a university or college degree? Does the taxpayer get an ROI for any subsidies provided? Economics Explored host Gene Tunny discusses how economists crunch the numbers on the ROI of education with his colleague Arturo Espinoza. Gene also gives an update on the US economy, covering the strong jobs growth figure for July 2022 among other indicators.  

Links relevant to the conversation

Macrobond charts and commentary on the US economy

https://drive.google.com/file/d/16u6pj-xjVcF5F6zfy5W99cDaClUwlsGF/view?usp=sharing

Sheepskin effect:

https://en.wikipedia.org/wiki/Sheepskin_effect

Estimating the return to schooling using the Mincer equation by Harry Anthony Patrinos, World Bank and Georgetown University

https://wol.iza.org/uploads/articles/278/pdfs/estimating-return-to-schooling-using-mincer-equation.pdf

Evaluating the Return on Investment in Higher Education: An Assessment of Individual- and State-Level Returns by Kristin Blagg and Erica Blom, Urban Institute

https://www.urban.org/research/publication/evaluating-return-investment-higher-education

Reassessing the College Wage Premium Payoff by Jack Salmon, Mercatus Center, George Mason University

https://www.jamesgmartin.center/2021/03/reassessing-the-college-wage-premium-payoff/

Rich Roll’s podcast:

https://www.richroll.com/all-episodes/

Graduate Winners: Assessing the public and private benefits of higher education by Andrew Norton

https://grattan.edu.au/report/graduate-winners-assessing-the-public-and-private-benefits-of-higher-education/

Estimating the public and private benefits of higher education report from Deloitte Access Economics

https://www.dese.gov.au/higher-education-reviews-and-consultations/resources/estimating-public-and-private-benefits-higher-education

Median weekly hours data by qualification for Australia

https://www.abs.gov.au/statistics/labour/earnings-and-working-conditions/characteristics-employment-australia/latest-release

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Thanks to Josh Crotts for mixing the episode and to the show’s sponsor, Gene’s consultancy business www.adepteconomics.com.au.