Question

1. What are the main ways in which the private return and the social return to education differ? (Word limit 150)

Answer 1

The main ways in which the social return to education and private return to education differ -

Basically it is assumed that private return to education is high . They earn in high amount than the individuals with lower level of education . On the other hand the social return in education can be defined as the sum of the cost of the units of human capital .

Private returns to education are basically considered to be positive as the level of education improves the worth of an individual in the job market but it is not going to increase the productivity of the society . The social cost of education includes the variety of resources utilised and ultimately giving results in the form of national education .

Basically the private returns to education is the increase in the income of an individual earnings on account of education whereas the social returns to education measures the overall increase in the national income .

Now if I talk about the rate of returns to the education they completely vary from person to person that completely depends upon the age , gender and various other demographic factors taken in consideration of the education .The private returns of education are basically higher than the social rate of returns .

Other social returns of education would reduced rate of crimes , unemployment and various other virtues and environmental gains .