Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/324361 
Year of Publication: 
2025
Series/Report no.: 
IZA Discussion Papers No. 17963
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
This paper presents the first analysis for Arkansas using 2024 CPS data to examine education's impact on earnings and returns to investment. Average returns are 7.7%, higher for women (9%). University education yields even more: 8.8% overall, 8.1% for men, and 10.8% for women. With full discounting, private returns are 11.5% and social returns 6.6%, suggesting social benefits may be undervalued. The key takeaway is that investing in better and broader access to education offers strong individual and societal returns, making it one of the most effective ways to boost economic outcomes.
Subjects: 
wage differentials
human capital
returns to education
earnings function
Arkansas
JEL: 
I26
J24
J31
Document Type: 
Working Paper

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