Why is investing in education important?

Economics Wednesday

A: The returns from investing in education are better most financial investments that is why...

According to " Estimating Returns to Schooling from State-Level Data: A Macro-Mincerian Approach" by Steven J. Yamarik, California State University at Long Beach, the social return to investing in education can be as high as 16%.

Abstract (from The B.E. Journal of Macroeconomics.)

In this paper, we use information from U.S. states to determine the social return to schooling. We estimate a macro-Mincerian model where aggregate earnings (or income) depend upon physical capital, labor, average years of schooling and average labor force experience. We find that the social return to U.S. schooling is 9 to 16 percent, which matches estimates of the private return found in the labor literature. Our results therefore provide evidence that U.S. schooling is indeed productive, but generates no positive externalities.

Low economic loss occupations

Plaintiffs who work in occupations with fast growth are more likely to obtain jobs after an employment termination. All else equal, economic damages will be lower in these occupations.

The Occupational Information Network (O*NET) identifies the occupations that are growing "much faster than average" across all industries and predicts which occupations will grow the most.

Customer Service Representatives (1,158,000)
Registered Nurses (1,001,000)
Personal and Home Care Aides (519,000)
Home Health Aides (454,000)
Computer Software Engineers, Applications (300,000)
Counter and Rental Clerks (291,000)
Computer Systems Analysts (280,000)
Management Analysts (264,000)
Medical Assistants (199,000)
Network Systems and Data Communications Analysts (193,000)
Amusement and Recreation Attendants (182,000)
Pharmacy Technicians (178,000)
Bill and Account Collectors (165,000)
Securities, Commodities, and Financial Services Sales Agents (161,000)
Network and Computer Systems Administrators (154,000)
Computer Software Engineers, Systems Software (150,000)
Dental Assistants (130,000)
Fitness Trainers and Aerobics Instructors (107,000)
Pharmacists (95,000)
Personal Financial Advisors (88,000)
Financial Analysts (87,000)
Paralegals and Legal Assistants (84,000)
Dental Hygienists (82,000)
Physical Therapists (68,000)
Mental Health and Substance Abuse Social Workers

Notes: The list below reflects the top 25 fastest-growing occupations followed by the projected need for each occupation during the years 2006-2016. Note, these are the occupations with the highest projected need among those growing much faster than average (not by sheer volume). So, for example, while there is a projected need for 802,000 Janitors and Cleaners during 2006-2016, this occupation is not projected to grow as quickly as the occupations on the list below. Nearly half (11) of the occupations in the list arre from the health care industry. In addition, five occupations each come from the financial services and information technology industries, while the hospitality and retail industries are each represented twice on the list. Two occupations on the list fell under more than one industry: Customer Service Representatives, which top the list, fall under both the financial services and retail industries. Counter and Retail Clerks (#6) are listed under both the hospitality and retail industries.

Hispanic women in the labor force

New Pew Center research shows demographic trends for Hispanic women with a focus on the differences between U.S. born Hispanic women, and non-Hispanic women.

http://pewhispanic.org/files/factsheets/42.pdf