Rate of Return on Education

The Rate of Return on Education refers to how much additional income or benefits a person gains over time from investing in their education, compared to the costs incurred (like tuition and time). It measures the increase in earning potential or economic advantage that education provides, helping individuals and policymakers understand how valuable educational investments are. Essentially, it shows whether the extra earnings from education justify the expenses and effort involved, highlighting the financial benefits of pursuing further learning or skills development.