Returns to education over the past half-century have beaten the US stock market

Re:Returns to education over the past half-century have beat... by whatshisface on Sunday May 06, 2018 @02:55AM (#17005532)

The 8.8% figure came from "an extra year of school," which has absolutely nothing to do with a return on the cost of an extra year of school. The statistic says nothing about how much that $1B would actually grow.

Is there a trade-off between academia and industry? Sure, but the economist has made an hilarious pants-down mistake in evaluating it. Maybe the ROI on an extra year of school would be even higher for the author ;)

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Re:Returns to education over the past half-century have beat... by Dwolb on Sunday May 06, 2018 @03:00AM (#17005540)

Sure but we can derive it.

We'd have to know the answer: on average how many extra years of school does $1B fund?

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Re:Returns to education over the past half-century have beat... by whatshisface on Sunday May 06, 2018 @03:05AM (#17005548)

It still wouldn't be comparable: the 8.8% is from an increase on earnings per hours worked, not an interest-style return on tuition money. You would also need to know what people were making on the job.

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Re:Returns to education over the past half-century have beat... by Dwolb on Sunday May 06, 2018 @03:15AM (#17005563)

Agreed we'd need to figure out average current salary. Any additional info we need to gather?

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