Thursday, March 21, 2013

Return on Investment

Below, I was not surprised that education provides a high rate of return; however, I was surprised that two-year colleges had a higher return than four-year colleges, but as Adam Looney notes, tuition at two-year colleges is a bargain.


Of course, the fact that two-year colleges have a higher return does not mean it makes sense to stop after two years. The next two years of college still have a huge return. You can see this by comparing the net present value of the two degrees.