Abstract: This paper reviews the method for estimating the rate of return to educational investments. It begins with a justification for using rate of return analysis to evaluate educational programs. Problems and difficulties with the method are also considered. In the main component of our paper we evaluate the mentoring program Big Brothers Big Sisters (BBBS), using rate of return analysis.
Introduction: This paper contributes to the literature on the economic evaluation of educational programs. To Economists, it is widely accepted that education is an investment that yields a rate of return; the conventional estimation method is to calculate the discounted earnings premium (net of cost) for each additional year of education. This method has been used intensively, with hundreds of estimates of earnings premia over time, across countries, and across cohorts. Click here to read more…
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