2018-04-29 13:44:00 Sun ET
technology social safety nets education infrastructure health insurance health care medical care medication vaccine social security pension deposit insurance
World Bank economists George Psacharopoulos and Harry Patrinos investigate 1,120 studies across 139 countries to derive an average annual rate of return on each marginal increase in the basic level of educational attainment. This 8.8% pay premium far exceeds the U.S. stock market return about 5.6%-6% per annum over the past 5 decades. The pay premium excludes social gains such as positive social interactions and low mortality rates in close association with better education. Also, the pay premium is higher for girls and college graduates (in direct comparison to postgraduates). This premium is higher in low-income countries primarily as these countries recruit a smaller share of international citizens with higher education.
In accordance with the law of lower marginal value, this pay premium dwindles for each extra year of educational attainment. Psacharopoulos and Patrinos posit a current race between education and technology. This race suggests that high-tech advances accelerate to favor high-skill workers to the detriment of low-skill workers. The normative implication for public policy is that the government should subsidize college education or even graduate school attendance. This subsidization serves as a worthy socioeconomic investment in human capital.
If any of our AYA Analytica financial health memos (FHM), blog posts, ebooks, newsletters, and notifications etc, or any other form of online content curation, involves potential copyright concerns, please feel free to contact us at service@ayafintech.network so that we can remove relevant content in response to any such request within a reasonable time frame.
2018-07-03 11:42:00 Tuesday ET
President Trump's current trade policies appear like the Reagan administration's protectionist trade policies back in the 1980s. In comparison to th
2019-06-25 10:34:00 Tuesday ET
Investing in stocks is the best way for people to become self-made millionaires. A recent Gallup poll indicates that only 37% of young Americans below the a
2019-08-08 09:35:00 Thursday ET
Kobe Bryant and several other star athletes have been smart savvy investors. In collaboration with former Web.com CEO Jeff Stibel, the NBA champion invests
2018-06-17 10:35:00 Sunday ET
In the past decades, capital market liberalization and globalization have combined to connect global financial markets to allow an ocean of money to flow th
2020-09-10 08:31:00 Thursday ET
Most business organizations should continue to create new value in order to achieve long-run success and sustainable profitability. Todd Zenger (2016)
2028-01-31 11:29:00 Monday ET
Today, the major passive index funds, private equity titans, hedge funds, and exchange funds etc combine to reshape Wall Street and several other global fin