Rates of return to private investment in tertiary technological education by faculty

Abstract

Education, according to human capital theory, means consuming but mainly investing. This
study estimates the rate of return to private investment in Tertiary Technological Education
(TTE) by field of study. The study uses the cost-benefit analysis method, more specifically the
short-cut, the elaborate and the Mincerian methods. The data are from a cross-sectional survey
of hired labor of tertiary technological education and secondary education graduates. Data were
collected using stratified sampling from the Greek economy. The main finding is that, in general,
private investment in TTE is profitable. Especially it is more profitable at the faculties of
technological applications, food and nutrition, health and caring professions. On the other hand,
investment in the faculties of graphic arts and design, administration and economics, and
agricultural technology has low return.