Object

PLMET:

click here to follow the link

Title:

The Rate of Return to Investment in Educaton: A Case Study of Lithuania

Creator:

Potelienė, Simona   Tamašauskienė, Zita

ORCID:

0000-0001-9571-8581   0000-0002-5363-6892

Subject and Keywords:

Lithuania   education   investment  
Litwa   edukacja   inwestycja

Abstract:

According to human capital theory, people invest in education to accumulate human capital, enhance personal productivity, and in return receive higher life-cycle earnings profiles. Education is a form of human capital investment and accumulation. The formulation and identification of human capital may be quite diverse and usually results in different estimation methods for the rate of return to education. This article is focused on approaches to the measurement of the returns of private investments in human capital in Lithuania. We focused attention on studying human capital investment accumulation through the rate of return on higher education. The aim of the research is to estimate the private rate of return to education in Lithuania and compare calculated data with analogical data in other countries. In the first part of the paper the concept of “human capital” is defined, before estimating the returns to human capital. Further, the research methodology is presented. One of the main ways to calculate the rate of returns to investment in education, which is used in empirical practice, is the full-discounting or elaborate method, which consists in calculating the internal rate of return, and it was this method which was employed. Results indicate that the rate of return for males is relatively higher than for females. The average estimated rate of return to higher education is 13 percent; with the estimated return for females being 12,5 percent; and for males 14,9 percent. After comparing Lithuania‘s and other European countries‘ rates of return on investment in human capital, it is seen that rate of return in Lithuania is similar to that of Spain.

Place of publishing:

Wrocław

Publisher:

University of Wroclaw. Faculty of Law, Administration & Economics

Contributor:

Kozłowski, Artur. Editor-in-Chief

Date issued:

2014

Resource Type:

text  
tekst

Detailed Type:

article  
artykuł

Identifier:

oai:repozytorium.uni.wroc.pl:131235   eISSN 2084-1264

DOI:

10.1515/wrlae-2015-0014

Language:

eng

Abstract Language :

eng

Relation:

Wroclaw Review of Law, Administration & Economics, vol.4, no.2, 2016, pp.41-55

Is version of:

click here to follow the link   click here to follow the link

Access rights:

Attribution  
Uznanie autorstwa

License:

Creative Commons - Attribution (CC BY 4.0)  
Creative Commons - Uznanie autorstwa (CC BY 4.0)

Rights holder:

Copyright by Wroclaw Review of Law, Administration & Economics, published by Sciendo

Autor opisu:

WR U/PAdbg