Online Education’s Return Benefits and Economic Effects

Proposal: Online Education’s Return Benefits and Economic Effects
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Proposal: Online Education’s Return Benefits and Economic Effects
Introduction
Given its flexibility and affordability, online learning in higher education has seen a significant surge in popularity within China in the recent past. Data showed that 1,949,189 out of 11,659,684almost 17 percent of learners in the Chinese higher education systems were enrolled as distance learners (Li & Wang, 2021). Consequently, the extent to which online education results in economic benefits for a learner is emerging as a topic of interest for those who are undecided about whether to pursue online education or traditional face-to-face learning. Li (2017) notes that the cost advantages of online learning make it an ideal mechanism that individuals can leverage to obtain private benefits such as the improvement of human capital.
Notably, tThe explosive growth of the internet and the significant investments by various institutions towards the development of online learning curricula places it as one of the ways through which adult learners can enhance their knowledge and skills. Thus, a study examining online education’s return benefits and economic effects can provide adult learners with the empirical evidence they require to determine whether they should pursue the various opportunities created by online distance universities.
Background Context
According to the human capital theory, education is a form of investment, where individuals invest time, effort, and resources in order to acquire knowledge and skills that will increase their future earning potential (Gillies, 2017). A decision to make an investment in education assumes that the returns to education will be greater than the costs of obtaining it. The human capital theory also emphasizes the importance of education in meeting the demands of a rapidly changing economy. As technological advancements continue to shape the economy, individuals must acquire new skills and knowledge in order to remain competitive in the job market (Cooper & Davis, 2017). Li (2018) notes that there have been a huge number of studies conducted to examine the benefits of education, with most of them suggesting that education plays a leading role in enhancing individual productivity.
Notably, two main approaches that have been applied in the measurement of the benefits of private education are the Mincerian rate of returns and the internal rate of return. The Mincerian rate of returns estimates the return on investment in education by measuring the relationship between an individual's level of education and earnings (Glocker & Storck, 2014). It assumes that education is a major determinant of earnings, and it measures the value of education in terms of its impact on earnings. The internal rate of return (IRR) is another approach that calculates the rate of return on investment in education over a specific period.
Online education started being considered a viable alternative to traditional higher education with the emergence of the internet, with the internet offering opportunities for universities and colleges to experiment with online courses (Li...