Perceived Rate Of Returns To Education: A UAE Perspective

Abstract

The measurement of rate of returns is central to the profitability analysis of educational investments. Literature suggests that the ex-ante approach of measuring the perceptions of the beneficiaries is a reliable indicator of returns to education. The present study estimates the perceived rate of returns to higher education for undergraduate students in UAE. Respondents were asked to provide estimates of future expected earnings with and without higher education. The study indicates that the Emiratis and non-Emirati students differ significantly in the estimates of perceived rate of returns. The findings of this study offer strategic insights on the economic considerations in the higher education enrollment process in the UAE. It also emphasizes the need for better counseling among the Emirati school students regarding the importance of higher education and return to higher education.