4 ms·
Not how I think about it. It's looking at ROI. And the cost of education typically correlates with quality and long-term earnings. (Put your pitch forks down,
by JOnAgain 10y ago
Not how I think about it.
It's looking at ROI. And the cost of education typically correlates with quality and long-term earnings. (Put your pitch forks down, not all schools, just generally.) So, if I think about this on a 20 year horizon. I have a $50K degree program at a state school vs a $200K degree from Harvard (numbers rounded). Lets just use 10% as the ROI. At 10% over 20 years, the return on the state school is ~$336,000. For Harvard, this yields ~$1,350,000. So, the ROI might be the same, but you basically get an extra million over 20 years for getting into Harvard.
- tdaltonc 10y agoBecause there is a big selection bias in university education, it's hard to say that Harvard caused someones income to go up using your math. I prefer this post from last year which tries to calculate value-added. http://www.economist.com/blogs/graphicdetail/2015/10/value-university http://www.economist.com/blogs/graphicdetail/2015/10/value-u...
- Chronic51 10y agoWhy does selection bias even matter? If you go to Harvard, you will make more than had you gone to a boring state school. Period. Is there selection bias? Yes. Does it change the fact the Harvard kid is wildly successful? No.
- aianus 10y agoBecause if the effects are due to selection bias, and you've been accepted to both Harvard and State School, you should pick State and earn an even higher return. If it's not selection bias, then you can conclude Harvard causes success and you should go there.