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This study evaluates the economic effectiveness of higher education in Lithuania by measuring returns to investment in higher education for both individual university graduates and the state, particularly aiming to discover how higher education investments impact economic returns at both micro (individual) and macro (national) levels.

A dual methodological approach has been applied, utilizing both the Mincer earnings equation and the full discounting method, to draw a clear distinction between the returns enjoyed by individuals and those accrued to the country. Calculations for individual economic returns are done using the most recent available Lithuanian Department of Statistics data on the wage structure, while national return on education was based on the State Tax Inspectorate and Lithuanian Public Finance databases.

The research confirms that Lithuanian investments in education positively influence both individual earnings and society at large, mainly due to the low cost of education and the high returns. For individuals, net present value varies from €126,000 to €224,000, and the internal rate of return is from 7% to 46%, with the highest return being for males working in companies of 50–249 employees and holding a bachelor’s degree. It is also noteworthy that one additional year spent in education increases earnings on average by 4.1%. The financing of first cycle studies costs the state two times less than second and third cycle studies. For this reason, the net present value (NPV) and internal rate of return (IRR) of first cycle studies are higher than those of second and third cycle studies.

While higher education is generally and globally seen as a way to ensure financial stability and career advancement at the individual level and socioeconomic development at the national one, the question of cost versus benefits at both levels is principal and diachronic. Our research quantifies the NPV and IRR of education investments and highlights the differential economic returns of various education levels, where policymakers can utilize these insights to inform strategic decisions regarding education funding and resource allocation. This study, therefore, provides explicit quantitative answers and presents individuals and policymakers with tangible results and practicable direction in their decision-making. The findings are applicable to the specific country-focus, but also constitute an applicable case study in the international context, particularly for European and other countries of comparable economic structure and developmental stage.

This work examines the returns to education for workers who pursue additional education after time out of the labor force. It compares those who remain in the labor force during additional education with those who drop out of the labor force during additional education. It compares two cohorts of the National Longitudinal Survey of Youth (NLSY).

This work utilizes a difference equation to estimate the returns to education for workers who pursue additional education after time spent out of school and in the labor force.

The results indicate a sheepskin return of approximately 14% for those who remain in the labor force and a return of approximately 9% to years of additional education for those who drop out of the labor force. This contrasting pattern of returns is robust to sample selection correction and a variety of checks.

This work does not fully account for all threats to causation. Further research could pursue these and make use of data from more clearly defined periods of education.

This work finds key differences between the internal labor market faced by those remaining in the labor force and the external labor market faced by those dropping out of the labor force. A policy focused on re-training workers should account for these differences.

This is the first work to compare workers who pursue additional education while remaining in the labor force to workers who pursue additional education and drop out of the labor force.

The paper investigates the determinants of the Ordinary Least Squares (OLS) bias of the wage return to graduate education for high-school workers in Portugal.

The study uses matched employer-employee data for Portugal, over the 2002–2012 period, to estimate a wage-schooling model that controls not only for individual observed characteristics, firm observed characteristics and year fixed effects, but also for three high-dimensional vectors of fixed effects – one for employees, one for employers and one for job titles.

The main results are the following. First, disregarding individual fixed effects is highly problematic, accounting for 48.5% of the OLS bias. Second, disregarding firm fixed effects is also problematic, accounting for 12.3% of the OLS bias.

The implication for the studies in the labor-supply literature that estimate, by means of instrumental variables, the wage returns to in-school work or to on-the-job schooling is that an instrument dealing with employee’s unobserved ability only may fail to meet the exclusion restriction.

Take the typical instrument based on a policy reform that changes the compulsory schooling level in the population. This instrument may well be argued to be correlated with the education of the employee and uncorrelated with the unobserved ability of the employee, but unfortunately it cannot be seen as orthogonal to the unobserved ability of the employer because of its correlation with the (unobserved) education of the manager. This is a simple corollary of the fact that the employee and the manager belong, in general, to the same population.

Individuals invest a considerable amount of resources in education, which is seen to have positive effects on several dimensions of individual life. Yet, the estimation of these effects is still surrounded by technical difficulties.

To the best of the authors’ knowledge, this is the first study that uses the Gelbach decomposition to investigate the determinants of the OLS bias of the wage return to graduate education for high-school workers.

The article aims to describe the role of training and examines the impact on the wages of university and college graduates.

We use nationwide administrative data on university and college graduates in 2019. The population includes 1.3 million observations, of which 222,000 (∼16%) received training after graduation from an educational institution (from July 2019 to 2022). We used OLS and the “difference-in-differences” methods to estimate the returns to training. Estimates obtained using the DID method turned out to be several times smaller because they consider unobserved characteristics (abilities).

We obtained several key findings. First, the participation of graduates in training is high, despite their recent education. Second, undergoing training is conditional on the existence of wage returns. The results show a wage premium of 17.8% (OLS method) and 2.0% (DID method). Third, graduates from nonselective universities (with low state exam score) try to participate more actively in training to acquire missing knowledge and skills. The wage premium for graduates from nonselective universities is 19.1% (OLS method) and 5.1% (DID method). Fourth, there is a high return to training for graduates from socially relevant fields (education and healthcare), where training is regular and mandatory.

This paper is one of the first to estimate the involvement and returns to training for graduates using nationwide administrative data in Russia.

This paper investigates the moderating role of institutional quality in the relationship between public education financing and educational quality in Sub-Saharan Africa (SSA).

This paper uses a two-step system generalised method of moments (GMM) to investigate the dynamic relationships among the variables using data from the World Bank covering the periods 2002–2020 for 46 SSA countries.

The results show that institutional quality moderates the effect of public education financing on educational quality at SSA’s primary, secondary and tertiary levels. This finding shows that improved institutional quality enhances the effectiveness of public educational investments.

The findings of this study imply that policymakers seeking to enhance educational quality must not only increase educational investments but also institute measures to improve institutional quality.

Prior studies fail to examine the moderating role of institutional quality in the nexus between public education financing and educational quality. This study analyses the role of institutional quality in the public education financing–educational quality nexus in SSA. The findings of this study contribute to improving the return on public education financing in SSA.

This empirical study aims to examine the COVID impact on the rate of return to schooling in 20 US industries.

An extended Mincer earnings equation with the COVID dummy variable and dummy interactive terms is used to examine the COVID effect on the rate of return to schooling for different industries. We use Heckman selection model to account for sample selection bias.

During COVID years, the change in the wage differential between college-and-above and below-college workers is different for industries, which leads to different changes in the rate or return to schooling among the 20 industries. During COVID, the rate of return to schooling increased for seven industries, decreased for seven industries and remained the same for six industries.

There is a lack of empirical tests of recession effects on the rate of return to schooling focusing on industry differentials. This study fills the research gap in this field. Our results will contribute to the ongoing discussion of the COVID impact on wages and returns from human capital investment.

The purpose of the present study is to investigate the extent to which female and male university students from low-income countries express different entrepreneurial intentions. Specifically, the study empirically tests whether the anticipated financial returns to entrepreneurship versus salaried employment, or the perceived barriers to entrepreneurship exert a stronger influence on the relationship between gender and entrepreneurial intentions.

To test the relationship of anticipated rewards versus barriers to entrepreneurship on gender and entrepreneurial intention, the study uses new data from a field survey in Sierra Leone and employs multiple mediation analyses.

The authors find that the relationship between gender and entrepreneurial intentions operates through the mediator of perceptions of the financial returns to entrepreneurship but not perceived barriers to entrepreneurship.

The authors study intent, not behavior, acknowledging that cognitive intent is a powerful predictor of later behavior. Implications for future research on entrepreneurship in the African context are discussed.

The results from this study can be applied to both pedagogic and business settings in the field of entrepreneurship, with concrete implications for policymakers.

Results suggest that the gender gap in entrepreneurial intentions (EI) for science, technology, engineering and mathematics (STEM)- and business-educated students in Sierra Leone is predominantly influenced by anticipated financial returns to occupational choices, as opposed to perceived barriers to entrepreneurship, a more frequently studied antecedent to EI.

This paper examines the determinants of children’s schooling under imperfect credit market conditions in Cameroon, with a particular focus on the role of monetary and non-monetary shocks.

The study uses microeconomic data from the fourth Cameroonian Household Survey (ECAM IV) conducted in 2014 by the National Institute of Statistics (INS) and an instrumental variable Probit model to demonstrate its point.

The results show that uncertainty about household income as measured by transitory income and declining household income decreases the probability of children attending school in Cameroon. The same is true for increasing household size. Nevertheless, access to the credit market is a factor in household resilience to shocks.

The purpose of this article is to contribute to the identification of the determinants of children’s schooling in Cameroon in a situation of credit market imperfection. The aim is to examine the influence of different household vulnerability factors and not only income shocks, which have long been considered the dominant factor.

The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-01-2024-0028

Children and youth who enter the care system have lower educational outcomes and university participation rates than their peers. This study aims to understand trend exceptions by examining the background of care-experienced undergraduates attending a research-intensive university in Canada.

Informed by social affordance theory, this study examined the presence of four indicators of stability (home, household occupants, school and legal status) during participants’ final three years of secondary education. Care-experienced undergraduates (N = 30) completed an online questionnaire. Associations between stability indicators, child welfare involvement in the final year of high school, educational outcomes and routes into higher education were analysed.

Stability across three to four indicators was experienced by 40% of participants, while 47% reported changes across three to four indicators. Only 20% had a change of school as compared to 47%–60% for other indicators. During their final year of high school, 73% of participants were supported by the child welfare system, with 50% being supported via a support program specifically for 16- to 18-year-olds. Stability scores were significantly lower for this latter subgroup compared to those who spent time in foster or group care and those who did not receive child welfare support during the final year of high school. Ninety percent of participants graduated from high school, 67% with the grades required to attend university. Three trajectories into undergraduate study were identified but could not be predicted using regression models.

This paper focuses on what has supported progression into a research-intensive university for care-experienced young adults and highlights the role of support programs for 16- to 18-year-olds.

In 2018, a group of higher education institutions (HEIs) in Switzerland started discussing the future of education. With the COVID-19 pandemic, many of their initial ideas and solutions were tested in the unpredictable, emergency online setting. This study aims to use student and faculty member perceptions to outline the future of higher education.

This research is based on eight surveys from students and faculty members at one Swiss HEI in business studies. While many previous studies focus on one group or one moment in time, this study examines the future of business education from both perspectives and traces the responses throughout the pandemic.

Teaching and learning strategies and perceptions evolved during the COVID-19 pandemic. Nonetheless, despite the potential, many HEIs simply reverted to normal instead of adapting to the “new normal”. Conversely, some HEIs have continued using the same exercises and tools that were used in the emergency remote pandemic-mode, without adapting or reflecting on the current learning environment. Based on the findings, both students and faculty members have increased their interest and proficiency in using digital tools although the students remained more open toward the opportunities of digital teaching and learning.

Based on the results, this study offers a model for the future of education that HEIs could implement when moving forward, whether on campus or online.