ERIC Number: ED152177
Record Type: RIE
Publication Date: 1978
Reference Count: 0
Are Americans Overeducated? Are Returns on Investments in Higher Education Lower than Those on Alternate Investments?
Witmer, David R.
An analysis is made in this speech of the rates of return on investments in higher education. Results indicate that the annual rates of return are higher in every year (1961-75) than the 10 percent realized on business investments. On the basis of the evidence presented, it is concluded that Americans are not overeducated. The trends in student quality are discribed, unemployment rates of college graduates are compared to the rates of high school graduates, the so called underemployment of college graduates is evaluated, and terms relating to the rate of return on investments in higher education are defined. Methods for determining private and social investments and for valuing the resources expended for and the products of higher education instruction are presented. Statistical data are included in the discussions of changes in costs per student and two theories of wages are outlined (marginal productivity theory and job competition theory). (SPG)
Publication Type: Speeches/Meeting Papers
Education Level: N/A
Authoring Institution: Wisconsin Univ., La Crosse.
Note: Paper presented at the Annual Meeting of the American Educational Association (Toronto, March 28, 1978)