Estimating the Return of Higher Education in Algeria: Evidence From Adrar University

Abstract

This study aims to measure the individual rate of return for investment in higher education at Adrar University by using both basic and extended Mincerian Earnings Function. In addition to this, the comparison had been established between the results obtained and those of other researches in the same domain.We adopted in the research the model of Mincer in evaluating the rate of the economic returns according to previous classifications and the effective experience got by the individual in the work (measured by years). The result of the model application states that the economic return of university education in Algeria has been improved by 8.49% based on the benchmark of Psacharopoulos International Return measured by 9.8%.We conclude that there is no general trend by which we can interpret the results but this lack of interpretation refers to the typical situation of the Algerian economy and its impact on the human capital (education specifically) as it is known that the relationship between the economic development and the human development is positive.