The return on investment in education is increasing year by year, which can be clearly seen by looking at the average academic qualifications of high-income people in recent years.
Education increases income.
Many studies have calculated that the rate of return on urban education in China is mostly 6- 10%, which means that one more year of education will increase the income of 6- 10%, while the rate of return on education in rural areas is about 4%. This is just the average. Economists in the United States calculated the cost of people's college education with their income before retirement at the age of 65, and came to the conclusion that the average rate of return of undergraduate education is 14- 15%, which is twice as high as the average savings rate of 6% and twice as high as the average rate of return of the stock market in the past 60 years (6.8%), that is, corporate bonds (2.9%).
What do these numbers stand for? Let's compare the return on investment of real estate. In the past two decades, the return on real estate investment in China has been quite high. Taking Shanghai's housing prices in recent ten years as an example, compared with the investment mode of bank regular savings, the appreciation of buying a house will exceed twice the interest of deposits in the same period. But in the next decade, the price increase in China will gradually stabilize.
At present, in most first-and second-tier cities, the de-chemical cycle is usually about 8- 12 months, and in some cities, the de-chemical cycle is about 6 months, such as Hangzhou, Chongqing and Changzhou. At present, the transaction volume of these cities is very active, and prices will go up. In most third-and fourth-tier cities, the de-chemical cycle is generally around 20 months, and the inventory backlog is serious and the market is deserted; The de-chemical cycle of individual cities has reached an astonishing 50 months, and the market is pessimistic. Moreover, the real estate market has raised interest rates many times this year, and the deed tax will be raised soon. The state has repeatedly stressed that it insists on housing and not speculating, because the city will stabilize the stock and strictly control the increment to prevent funds from flowing into the real estate market in violation of regulations. Therefore, the return on real estate investment will gradually decrease in the future. In this way, the return on investment in education will gradually exceed that in real estate.
Academic qualifications not only bring about an increase in income, but also bring invisible benefits such as contacts.
The benefits brought by education can not be completely measured by money, but also can bring hidden benefits such as improving social status and increasing network resources. Cohen, Frazzini and Malloy (20 10) found that if analysts and top executives of listed companies have an intersection in educational background, such as alumni, then analysts will perform better in analyzing companies, and this outstanding performance mainly comes from information advantages.
Education brings great spiritual benefits.
Education can also bring spiritual satisfaction after improving knowledge and cognitive ability, and also enjoy culture and art.
But even if the average rate of return on education is high, it does not mean that everyone enjoys the same rate of return. Some people can get a return of 5 1-9 1% through education, which can be said to be a leap in status; Others get a negative return of -32%. Take university education as an example. Everyone's rate of return on education is affected by three aspects:
First of all, personal ability. In China, some college students, adventureland, have spent four years, tens of thousands of dollars in tuition and living expenses, but they have not necessarily learned vital abilities. How you develop after graduating from college depends on how you use your time and school resources to fully expand your ability boundaries. Cherish college time, choose the right major, and choose the right major. Only after graduation can we go better and further.
Secondly, the quality of the school. Generally speaking, the student return rate of famous universities is higher than that of ordinary universities. The graduation rate of famous universities and 2 1 1 universities is 28% higher than that of ordinary universities, while the return rate of 985 universities is 2 1 1 times that of universities. But in recent years, choosing a good major has gradually become more important than a good school.
Look at the professional choice. Generally speaking, the rewards of engineering, computer and mathematics majors will be higher than those of liberal arts majors. Among undergraduate majors, the university return rate of mathematics and computer is as high as 18%, which is higher than the average of 10%. Especially in the current situation of artificial intelligence, 5G, semiconductor and other high technologies, computer and other majors are a good choice. Followed by business administration 17%, social science 15%, and other liberal arts majors 12%. Education has the lowest rate of return, 9%.
This year, China has added 37 university majors. Interested readers can pay more attention to information technology, flexible electronics and intelligent measurement and control project of biomedical data science in medical public nursing industry. Most undergraduate courses in Europe and America are "open courses". The official definition is "students develop personalized learning courses-they have greater freedom to learn what they choose and greater flexibility to discover what they like." Students have greater freedom to choose courses and cross-majors, so readers who plan to study abroad can read more about this information.
Choosing a good school and major depends on which city the school is in and whether it is conducive to its future development.
Finally, it is emphasized that education includes not only learning knowledge from books, but also professional abilities, including social skills, emotional control, and non-cognitive abilities such as self-discipline, communication, persistence and perseverance. Because we have entered the foundation of society, education and book knowledge, it is fundamental to find and solve problems.
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On the website of Habitat for Humanity, ten points of education are put forward in detail.