Unlocking Effect of Education

Abstract

This paper illustrates the benefit of evaluating the effect of education on income using education level rather than years of schooling. The result indicates that an extra year of advance education is worth more than an extra year of basic education.Our findings contradict with past research articles that find evidence of diminishing return to education but are consistent with Becker's[2] and Schultz's[9] claim that the positive effect of education on income is not uniform. Ultimately, our findings offer guideline for nation’s education financing policy.