Returns to higher education: Comparison of the USA and Europe
|Author:||Bc. Lukáš Patera|
|Year:||2021 - summer|
|Leaders:|| Mgr. Barbara Pertold-Gebicka M.A., Ph.D.
|Work type:|| Bachelors
|Awards and prizes:|
|Abstract:||The thesis examines returns to education in the USA and Germany and provides a side-byside comparison of the results. An OLS regression is run based on an adjusted Mincer
equation with added controlling variables and dummy variables for the highest achieved
education degree rather than years of schooling. The results show that higher investment in
education needed in the USA yields considerable higher returns than in Germany and also
show differences in the impact of potential experience in both countries. However when
looking at accumulated earnings including direct costs in form of tuition fees in the USA, the
higher returns are diminished, especially in the early stages of life.