Practical Measures of Benefits of Education: An Analysis of Systematic Review

Education is a service that provides both economic and non-economic benefits to individuals, society, and the state. However, especially in developing countries like Nepal, the measurement of economic benefits of education is very low, while the measurement of non-economic benefits is almost non-existent. Additionally, in Nepal, there is a lack of study materials and knowledge of standardized methods. In this context, the study aims to identify, analyze, and compare practical methods and techniques used internationally to measure both economic and non-economic benefits of education. For this, research articles, books, policy reports, and PhD dissertations were reviewed based on a systematic literature review design. A total of 136 study materials were collected, and 48 materials met the selection criteria. The findings of the study reveal that many methods are available to measure the economic benefits, and those are also easy to understand and use. Methods, namely, years of experience, discounting, normality testing, mean, marginal, age-education-earnings profile, etc., can be used to measure the economic benefits of education. In addition, methods such as Cronbach's alpha, Pearson's correlation, average weighted mean value, etc., are used to measure the non-economic benefits of education. However, for measuring non-economic benefits, there is a complex measurement process, no uniform approach, and difficulty in understanding the methods. Finally, this study will provide practical avenues for researchers in the economics of education, especially in countries like Nepal, where there are limitations in the study materials and research in this area.