(1) personal education rate of return. It refers to the ratio of increased personal income in higher vocational education after deducting income tax (referring to increased personal net income), discounting and discounting education costs, and then multiplying it by 100%.
(2) Social education rate of return. Refers to the ratio of the net present value of the total social education income to the total social education cost after discount, and then multiplied by 100%.
The greater the L, the higher the economic benefits of higher vocational education.
A country's economic development level, employment structure and labor market demand have a great influence on its education return rate. In developed countries, the labor market requires higher education level, so the education income of the corresponding population with lower education level is relatively low. When the country has a high degree of marketization and the private sector occupies the main position, the rate of return on education in the private sector is often higher than that in the public sector (the United States); On the contrary, the return on education in the public sector is higher than that in the private sector (Botswana). With the improvement of marketization, the rate of return on education in developing countries will greatly increase (China).