Returns to Investment in Distance Learning: the Case of Greece

Abstract

In this paper we extent the literature on the rate of return to investment in Higher Education towards studies in distance learning Universities. In particular, we explore the difference in returns between graduates of a distance learning university (the Hellenic Open University - HOU) and applicants that were excluded by this university’s random selection process and did not study elsewhere. The data set was extracted from a database compiled from responses to a questionnaire which was part of a survey concerning HOU (the only Distance-learning University in Greece). A modified Mincer type model was estimated with fixed effects. Our findings suggest that graduates that have obtained a first degree from HOU enjoy a rate of return to education of about 8% higher than the rate of return obtained by those high school graduates that were not selected by this university. Moreover, Master’s degree graduates get about a 16.5% higher rate of return to education relatively to those applicants that were not selected for studies in HOU and did not study elsewhere. Additionally, our findings also show that the rates of return for higher education are high even after the 2008 economic crisis. These results suggest a straightforward policy implication: a distance learning University may not only be considered as a second chance to education for mature students, often facing time and budget restrictions, but, it may also be seen as a worthwhile private investment enabling a much higher private return. Moreover, from policymakers’ point of view, a distance learning university can be seen as a vehicle to reduce income inequalities and thus increase social mobility.

Survey on Rate of Return on Investment in Education

“…These data are shown in Table 1. (Agiomirgianakis, Lianos, & Tsounis, 2019;Agrawal, 2011;Carnoy, Loyalka, Androushchak, & Proudnikova, 2013;Guo, Huang, & Zhang, 2019;Hoque, King, Montenegro, & Orazem, 2020;Mohammad & Kazuo, 2020;Montenegro & Patrinos, 2014;Patrinos, 2016;Poteliene & Tamasauskiene, 2016;George Psacharopoulos & Patrinos, 2018a;George Psacharopoulos & Patrinos, 2018b;Rizk, 2019;Sargsyan, 2020;Tangtipongkul, 2015). Note: MENA = Middle East & North Africa region's countries, BRIC countries (Brazil, Russia, India & China).…”

“…Source:(Agiomirgianakis et al, 2019;Carnoy et al, 2013;Harberger & Guillermo-Peón, 2012;Melianova et al, 2020;Montenegro & Patrinos, 2014;Moreno & Patrinos, 2020;Patrinos, 2016;Poteliene & Tamasauskiene, 2016; George Psacharopoulos & Patrinos, 2018b). Note: SL = School level of education and HL = Higher level of education.…”

Synchronous Learning in Institutions of Higher Learning during COVID-19: Lessons from Developing Countries

“…Synchronous learning requires technologically aware and experienced facilitators to manage the LMS. In contrast with synchronous learning, the researcher [19] regards asynchronous learning as a situation where students access the learning material uploaded beforehand, in their own time. This type of learning has been the most commendable, especially for emerging countries where students struggle with network connectivity and internet access.…”

Education in the pandemic economy: attitudes towards distance learning as a drive of university students’ decision making

“…In the context of Greek higher education, experience has thus far been limited to the use of e-class (asynchronous education). Of all the Greek universities, only the Hellenic Open University has had significant experience with distance learning (Agiomirgianakis et al , 2019; Koumparoulis, 2011), whereas other universities have only organised and/or are organising postgraduate programs that are partly carried out by the method of distance learning. To meet the increased need for this educational method, many e-learning platforms have been used.…”