Education return of different levels in private and public sectors

Document Type : RESEARCH PAPER

Authors

1 Associate Professor, Department of Economics, Faculty of Economics and Social Sciences, University of Bu-Ali Sina, Hamadan, Iran

2 PhD in Economics, Faculty of Economics and Social Sciences, Bu Ali Sina University, Hamadan, Iran

Abstract

In the recent decades, global tendency towards the knowledge-based economy, has become human capital and effective labor to one of the major factors of economic growth and has led to increasing willingness of governments and individuals to invest in higher education. generally, considering education as an investment and development of educational systems on the one hand and increasing the share of education in gdp and the national budget on the other hand, has attracted the attention of economists and planners to evaluate the effectiveness of investment in education. the purpose of this study was to evaluate the private rate of return of educational institutions in iran using the generalized mincer model and by using the mincer income function, the effect of education at different levels on employee income was investigated using household-budget statistics in 2019. ordinary least squares regression model (OLS) has been used to estimate the desired pattern.the results showed that education in diploma, bachelor and postgraduate degrees has a positive effect on income from employment that the rate of this impact for each year of additional education is about 8/1 percent and the effect of work experience on people's income shows 4/1 percent. this, apart from other incentives to enter these sections, shows the economic justification of these sections from an individual point of view. also, with the inclusion of virtual variables of gender, job and marital status of individuals in the model according to the coefficients obtained in the regression model, the effect of these variables on the income of individuals has been a significant effect and these results were obtained: men earn more than women, people working in the public sector earn 32.3% more than other people in the private sector and finally married people earn 41.6% more than single people.

Keywords

References

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Stable Economy Journal
Volume 2, Issue 4 - Serial Number 5
December 2022
Pages 114-135

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