The Rate of Return on Education Investment in South Sumatra Province: An Analysis
Abstract
This research was conducted to determine the rate of return on education investment for workers in South Sumatra Province. The data used was obtained from the SAKERNAS for February 2022 provided by BPS and consisted of 2965 selected samples. The analyzed data includes the workers’ wages, education level, work experience, gender, economic sector they belong to, and regional category. The results of this study suggest that the level of education, work experience, gender, economic sector, and regional category collectively influence the amount of wages received by the workers. Changes in wages can be attributed to the variables of education level, work experience, gender, economic sector, and regional category, accounting for 19.5% of the observed variance. The remaining 80.5% of the variance is attributed to other variables not considered in this study. Furthermore, the findings indicate that the rate of return on education investment is expected to increase in 2022, corresponding with higher levels of education among the workers.
Keywords: return on education investment, education, experience, gender, economic sector, region
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