An Empirical Study On The Rate Of Income Of Individual Education In Shandong

The rate of return on education is one of the major topics in the area of education economics,labor economics,and income distribution.Education income mainly refers to the income that individuals or society bring after the education process,so it can be divided into individual income and social benefits.This article studies the individual education return rate,ie the ratio of individual education cost and education income,and the individual’s pure economic reward caused by one year’s education.Research on the rate of return on education has always been a hot topic.Domestic scholars have studied a large number of papers on the rate of return on education in the country,but there are few papers on the rate of return on education in Shandong Province.This study can fill in the gaps in the research on the rate of return on education in Shandong Province.Shandong’s GDP ranks third in the country and accounts for 1/11 of China’s total GDP.It is the third largest economy in the country.Shandong Province is also a province with a large population,a large number of students,and a major province of education.Research on the rate of return on education in Shandong province is not only for Shandong but also for other eastern provinces.By studying the personal education rate of return in Shandong Province,this article can provide reference for individuals and families to choose their studies and provide data support and statistical reference for government education,finance and planning departments.In addition,this article studies the education returns rate of different genders in Shandong Province.The educational return rate in different education stages is helpful to explore the labor market wage decision mechanism in Shandong Province to further analyze the fairness of income distribution.Based on the above background and requirements,this paper analyzes three common calculation methods for the rate of return on education and elaborates on its advantages and disadvantages for each method.In the comparison,it provides the selection basis for the subsequent choice of the Mincer equation model.Since the error in the calculation of the education rate of return also occurs,the mechanism of the error is elaborated by analyzing the concepts of the four types of errors.This paper provides the method for reducing the error and improving the accuracy of the data when calculating the education rate of return in Shandong Province.Reference.The specific implementation work is as follows: First,select comprehensive social survey data for 2013.In order to improve the accuracy of the education rate of return,the income of the sample shall be clearly defined as wage income,and the education level of the sample shall be strictly screened,and those who have not attended school should be excluded.,reading sample.Finally,6171 sample data from the country and 324 sample data from Shandong were selected.Secondly,the data analysis software was used to study and analyze the rate of return on education in Shandong Province using quantitative research method based on the Mingse equation model.Because Shandong has a small sample size,in order to reduce the error of the final estimation result,this paper uses the extended Mincer equation model to add the interaction term of regional variables and years of education to calculate the educational return rate in Shandong Province.The family background of explanatory variables was added to explore the influence of family background influence factors on the rate of return to education in Shandong.Different from the traditional research,the family background factor only adopts the factors that influence the father’s years of education.This article also comprehensively considers the mother’s education years.Calculate the rate of return to education in different genders in Shandong Province by adding the interaction term of gender and years of education.Finally,using the selected sample data from Shandong Province,the educational return rate at different stages of education is calculated.It is calculated that the rate of return on education in Shandong Province is smaller than the national rate of return on education;family background factors will affect the rate of return on education in Shandong Province,and the rate of return on education that is not factored into the family background will be a high estimate;it is different from the national sample data.The female return rate is higher than that of the male education.The rate of male education in Shandong is higher than that of females.It means that the wage increases rate of males receiving one year of education is greater than that of females who receive more than one year of education.The labor market in the province is relatively conservative,and positions with high salary and salary tend to be more male;Shandong Province has different rates of return on education under different levels of education.The higher the level of education,the higher the rate of return on education is.The largest increase in yields.