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11 Wroclaw Rev. L. Admin. & Econ. 1 (2021)

handle is hein.journals/wrorwolwa11 and id is 1 raw text is: 4.s ciendo Wroclaw Review ofLaw, Administration & Economics Vol 11:1, 2021 DOI: 10.2478/wrlae-2021-0010 INTERNAL RATE OF RETURN ON INVESTMENT IN HIGHER EDUCATION IN EUROPE JANUSZ JABLONOWSKI* KEYWORDS higher education, internal rate of return, European Union, Mincer wage equation ABSTRACT The study aims to update the well-settled issue in literature of rate of return on investment in higher education in Europe. The proposed approach slightly modifies the existing methodology based on the Mincer equation, using an updated set of data for the period 2014-2016 from the European Central Bank's 'Household Finance and Consumption Survey'. The results obtained, ranging between 13% and 21%, are higher compared to historical records for the years 1996-2013. As for the microeconometric estimates of the Mincer-type equation, they are sound and comparable, although showing higher margins in relation to the recent figures. Thus, they may suggest an increasing trend in valuation and importance of human capital based on high school degree, especially for the Central-Eastern European Union countries, resulting probably from rapid economic and cultural convergence. JEL Codes: C83, 126, J24, 012 I. INTRODUCTION The factor that enhances growth in semi-endogenous growth models is represented by the human capital, which is a factor endogenised via timing and resources spent on education by two sectors, in principle, education, and production sector (Rebelo, 1991). The human capital helps to diminish the effect * SGH Warsaw School of Economics, Poland, Email: janusz.jablonowski@sgh.waw.pl ORCID: 0000-0001-5935-8515 - 1 -

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