IDEAS home Printed from https://ideas.repec.org/a/tuz/journl/v21y2023i1p65-70.html
   My bibliography  Save this article

Estimating Private Financial Return On Investment In Education In Tangail City: A Mincerian Model Analysis

Author

Listed:
  • Kazi Tabassum

    (Department of Economics, Mawlana Bhashani Science and Technology University, Bangladesh)

  • Muhammad Rabiul Islam Liton

    (Department of Economics, Mawlana Bhashani Science and Technology University, Bangladesh)

Abstract

Several reasons are responsible for income disparity across different nations. Education established itself to be the primary reason for such disparities. Therefore, estimation of return on investments in education has become a great concern of the researchers in recent years. In most of the cases researchers used earnings function for estimating return on investments in education and found lower return for developing and least developed countries. Therefore, the study aimed to investigate the private financial return on investments in education in Tangail City of Bangladesh. To pursue the study, the required data from 100 respondents from the study area were collected. The study employed the Mincerian Model for estimating the rate of private financial return on investments in 1 year education in Tangail City. It found the rate 2.1% which is very low. Parallely, the study also revealed that besides education, type of occupation and job experience had a great influence on the income of people of Tangail City.

Suggested Citation

  • Kazi Tabassum & Muhammad Rabiul Islam Liton, 2023. "Estimating Private Financial Return On Investment In Education In Tangail City: A Mincerian Model Analysis," Economic Review: Journal of Economics and Business, University of Tuzla, Faculty of Economics, vol. 21(1), pages 65-70, May.
    • Handle: RePEc:tuz:journl:v:21:y:2023:i:1:p:65-70
    as

    Download full text from publisher

    File URL: http://ef.untz.ba/wp-content/uploads/2023/12/5_ER_MAY_2023_5_pp_65_70.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Thomas Lemieux, 2006. "Postsecondary Education and Increasing Wage Inequality," American Economic Review, American Economic Association, vol. 96(2), pages 195-199, May.
    2. Jacob A. Mincer, 1974. "Introduction to "Schooling, Experience, and Earnings"," NBER Chapters, in: Schooling, Experience, and Earnings, pages 1-4, National Bureau of Economic Research, Inc.
    3. Blundell, Richard, et al, 2000. "The Returns to Higher Education in Britain: Evidence from a British Cohort," Economic Journal, Royal Economic Society, vol. 110(461), pages 82-99, February.
    4. Asadullah, M. Niaz, 2009. "Returns to private and public education in Bangladesh and Pakistan: A comparative analysis," Journal of Asian Economics, Elsevier, vol. 20(1), pages 77-86, January.
    5. N. Gregory Mankiw & David Romer & David N. Weil, 1992. "A Contribution to the Empirics of Economic Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 107(2), pages 407-437.
    6. Siphambe, Happy Kufigwa, 2000. "Rates of return to education in Botswana," Economics of Education Review, Elsevier, vol. 19(3), pages 291-300, June.
    7. Jacob A. Mincer, 1974. "Schooling, Experience, and Earnings," NBER Books, National Bureau of Economic Research, Inc, number minc74-1.
    8. Psacharopoulos, George, 1994. "Returns to investment in education: A global update," World Development, Elsevier, vol. 22(9), pages 1325-1343, September.
    9. Psacharopoulos, George, 1989. "Time trends of the returns to education: Cross-national evidence," Economics of Education Review, Elsevier, vol. 8(3), pages 225-231, June.
    10. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Angel de la Fuente & Antonio Ciccone, 2003. "Human capital in a global and knowledge-based economy," UFAE and IAE Working Papers 562.03, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
    2. Leone Leonida & Leone Leonida & Daniel Montolio, 2003. "Public Capital, Growth and Convergence in Spain. A Counterfactual Density Estimation Approach," Working Papers 2003/3, Institut d'Economia de Barcelona (IEB).
    3. Klaus Prettner, 2012. "Public education, technological change and economic prosperity: semi-endogenous growth revisited," PGDA Working Papers 9012, Program on the Global Demography of Aging.
    4. Prettner, Klaus & Bloom, David E. & Strulik, Holger, 2013. "Declining fertility and economic well-being: Do education and health ride to the rescue?," Labour Economics, Elsevier, vol. 22(C), pages 70-79.
    5. Marcelo Soto, 2006. "Estimating the Social Return on Schooling," Papers of the Annual IUE-SUNY Cortland Conference in Economics, in: Oguz Esen & Ayla Ogus (ed.), Proceedings of the Conference on Human and Economic Resources, pages 43-65, Izmir University of Economics.
    6. Wößmann, Ludger, 2000. "Specifying Human Capital: A Review, Some Extensions, and Development Effects," Kiel Working Papers 1007, Kiel Institute for the World Economy (IfW Kiel).
    7. Remi Jedwab & Paul Romer & Asif M. Islam & Roberto Samaniego, 2023. "Human Capital Accumulation at Work: Estimates for the World and Implications for Development," American Economic Journal: Macroeconomics, American Economic Association, vol. 15(3), pages 191-223, July.
    8. Prettner, Klaus, 2012. "Public education and economic prosperity: Semi-endogenous growth revisited," ECON WPS - Working Papers in Economic Theory and Policy 02/2012, TU Wien, Institute of Statistics and Mathematical Methods in Economics, Economics Research Unit.
    9. Martin Werding & Sonja Munz & Vera Gács, 2008. "Fertility and prosperity : links between demography and economic growth," ifo Forschungsberichte, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 42.
    10. Hk Siphambe, 2008. "Rates Of Return To Education In Botswana: Results From The 2002/2003 Household Income And Expenditure Survey Data Set," South African Journal of Economics, Economic Society of South Africa, vol. 76(4), pages 641-651, December.
    11. Growiec, Jakub, 2010. "Human Capital, Aggregation, And Growth," Macroeconomic Dynamics, Cambridge University Press, vol. 14(2), pages 189-211, April.
    12. Priyo Asad Karim Khan, 2012. "Sector-Specific Capital, Labor Market Distortions and Cross-Country Income Differences: A Two-Sector General Equilibrium Approach," The B.E. Journal of Macroeconomics, De Gruyter, vol. 12(1), pages 1-52, March.
    13. Les OXxley & Ttrinh Le & John Gibson, 2008. "Measuring Human Capital: Alternative Methods and International Evidence," Korean Economic Review, Korean Economic Association, vol. 24, pages 283-344.
    14. Wei-Bin Zhang, 2015. "National Education and Global Economic Growth: A Synthesis of the Uzawa–Lucas Two-Sector and the Oniki–Uzawa Trade Models," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 6(4), pages 905-928, December.
    15. Prettner, Klaus, 2013. "Public education, technological change and economic prosperity," University of Göttingen Working Papers in Economics 149, University of Goettingen, Department of Economics.
    16. Philip Trostel & Ian Walker, 2006. "Education and Work," Education Economics, Taylor & Francis Journals, vol. 14(4), pages 377-399.
    17. Zhang, Xiaobei & Wang, Xiaojun, 2021. "Measures of human capital and the mechanics of economic growth," China Economic Review, Elsevier, vol. 68(C).
    18. Altinok, Nadir & Aydemir, Abdurrahman, 2017. "Does one size fit all? The impact of cognitive skills on economic growth," Journal of Macroeconomics, Elsevier, vol. 53(C), pages 176-190.
    19. Bloom, David E. & Canning, David & Kotschy, Rainer & Prettner, Klaus & Schünemann, Johannes, 2024. "Health and economic growth: Reconciling the micro and macro evidence," World Development, Elsevier, vol. 178(C).
    20. Daren, Conrad, 2007. "Education and Economic Growth: Is There a Link?," MPRA Paper 18176, University Library of Munich, Germany, revised 2009.

    More about this item

    Keywords

    Private Financial Return; Education; Mincerian Model; Tangail;
    All these keywords.

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:tuz:journl:v:21:y:2023:i:1:p:65-70. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Senad Celikovic (email available below). General contact details of provider: https://edirc.repec.org/data/efutzba.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.