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Estimating the Economic returns of Education in KSA by using Mincerian Earnings Function

Author

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  • Benlaria Houcine

    (Department of Business Administration, Jouf University, KSA,)

  • Gheraia Zouheyr

    (Department of Finance and Investment, Jouf University, KSA.)

Abstract

This study aims to measure the economic rate of returns for investment in KSA. by using both basic and extended Mincerian Earnings Function. In addition to this, the comparison had been established between the results obtained and those of other researches in the same domain. We adopted in the research the model of Mincer in evaluating the rate of the economic returns according to previous classifications and the effective experience got by the individual in the work (measured by years). The result of the model application states that the economic return of university education in KSA has been improved by 10.35% based on the benchmark of Psacharopoulos International Return measured by 9.6%.

Suggested Citation

  • Benlaria Houcine & Gheraia Zouheyr, 2019. "Estimating the Economic returns of Education in KSA by using Mincerian Earnings Function," International Journal of Economics and Financial Issues, Econjournals, vol. 9(6), pages 94-99.
    • Handle: RePEc:eco:journ1:2019-06-11
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    References listed on IDEAS

    as
    1. Berthold U. Wigger, 2004. "Are Higher Education Subsidies Second Best?," Scandinavian Journal of Economics, Wiley Blackwell, vol. 106(1), pages 65-82, March.
    2. George Psacharopoulos & Harry Anthony Patrinos, 2004. "Returns to investment in education: a further update," Education Economics, Taylor & Francis Journals, vol. 12(2), pages 111-134.
    3. Pedro Carneiro & James J. Heckman & Edward J. Vytlacil, 2011. "Estimating Marginal Returns to Education," American Economic Review, American Economic Association, vol. 101(6), pages 2754-2781, October.
    4. Jacob A. Mincer, 1974. "Schooling, Experience, and Earnings," NBER Books, National Bureau of Economic Research, Inc, number minc74-1.
    5. Cunha, Jesse M. & Miller, Trey, 2014. "Measuring value-added in higher education: Possibilities and limitations in the use of administrative data," Economics of Education Review, Elsevier, vol. 42(C), pages 64-77.
    6. Albert J. Robinson, 1971. "Government Subsidy to Higher Education: The Benefits, Costs and Non‐Economic Value of the Policy," American Journal of Economics and Sociology, Wiley Blackwell, vol. 30(3), pages 259-274, July.
    7. Byron, Rayond P & Manaloto, Evelyn Q, 1990. "Returns to Education in China," Economic Development and Cultural Change, University of Chicago Press, vol. 38(4), pages 783-796, July.
    8. Jacob A. Mincer, 1974. "Schooling and Earnings," NBER Chapters, in: Schooling, Experience, and Earnings, pages 41-63, National Bureau of Economic Research, Inc.
    9. D. F. Westerheijden, 1999. "Innovation indicators in science and technology evaluation: Comments from a higher education point of view," Scientometrics, Springer;Akadémiai Kiadó, vol. 45(3), pages 445-453, July.
    10. Winkler, Donald R., 1984. "The Costs and Benefits of Foreign Students in United States Higher Education," Journal of Public Policy, Cambridge University Press, vol. 4(2), pages 115-138, May.
    11. Jacob A. Mincer, 1974. "The Human Capital Earnings Function," NBER Chapters, in: Schooling, Experience, and Earnings, pages 83-96, National Bureau of Economic Research, Inc.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    The individual Return; Earnings Function; Practical Experience; Theoretical Experience;
    All these keywords.

    JEL classification:

    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination

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