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.
2023-02-03 08:27:00 Friday ET

Our proprietary alpha investment model outperforms most stock market indices from 2017 to 2023. Our proprietary alpha investment model outperforms the ma
2020-09-24 10:26:00 Thursday ET

Edge strategies help business leaders improve core products and services in a more cost-effective and less risky way. Alan Lewis and Dan McKone (2016)
2018-12-29 09:32:00 Saturday ET

Andy Yeh Alpha (AYA) AYA Analytica financial health memo (FHM) podcast channel on YouTube December 2018 AYA Analytica is our online regular podcast and news
2019-08-26 11:30:00 Monday ET

Partisanship matters more than the socioeconomic influence of the rich and elite interest groups. This new trend emerges from the recent empirical analysis
2018-08-27 09:35:00 Monday ET

President Trump and his Republican senators and supporters praise the recent economic revival of most American counties. The Economist highlights a trifecta
2019-01-23 11:32:00 Wednesday ET

Higher public debt levels, global interest rate hikes, and subpar Chinese economic growth rates are the major risks to the world economy from 2019 to 2020.