Returns and Costs of Education

The purpose of this chapter is to explain the behavior of the individual who decides to receive education. The basic assumption of this chapter is that each person wants to do the best for oneself taking into account the economic, non-economic and time constraints one faces. The methodological approach of this chapter is the micreoconomic approach which supports that a person makes a decision by comparing the benefit and the cost derived from this decision. The benefits and costs that derive from a decision to pursue education are both financial and non-financial. Each person evaluates the benefits and the costs received from education differently. The environment in which a person has grown up also influences their decisions regarding the education they want to receive. The purpose of this chapter is to present and analyze all different benefits and costs that one has to take into account when deciding on the level of education one wants to pursue. This chapter: