IJSSH 2013 Vol.3(1): 1-4 ISSN: 2010-3646
DOI: 10.7763/IJSSH.2013.V3.180

Estimation of Internal Rate of Return (IRR) to Investments in Education in Latvia

Linda Romele
Abstract—The objective of the paper is to estimate Internal rate of return (IRR) to education in Latvia based on methodology used by OECD. IRR shows the efficiency of investments in higher education as private return at level of individual. IRR method includes estimation of several factors related to employment probability, pensions and wage premiums, labour taxes. The data of research are based on Labour Force Survey data issued by Central Statistical Bureau of Latvia for year 2010. Objectives of the paper are directly pointed to seeking for methods of recovery of the national economy and further development. The issue of the paper is very urgent as it applies to welfare of the society and growth of human capital.

Index Terms—Employment, IRR, wages.

Linda Romele is with the University of Latvia, Riga, Latvia and research company Ltd. EPC, Riga, Latvia (e-mail: linda@epc.lv)

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Cite:Linda Romele, "Estimation of Internal Rate of Return (IRR) to Investments in Education in Latvia," International Journal of Social Science and Humanity vol. 3, no. 1, pp. 1-4, 2013.

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