27 September 2018
From time immemorial, people have assumed that universities have a positive socio-economic impact on society. Universities create a well-educated workforce, carry out research and development, and provide significant social mobility.
The 2018 report by the World Bank Group, Changing Nature Of Work, estimates that the global average private return to tertiary education is 15.8 per cent.
But people have also begun to question whether the return on the investment in higher education is worth it, and whether the impact of university education is meaningful rather than marginal.
In certain countries, it is theorized that higher education does not always lead to better jobs. In places like China, and North Africa, there is significant graduate unemployment or underemployment.
Governments also do not always see the return on the investment in R&D in the growth of their GDP.
Some politicians, in particular in the United States, question whether the public sector should actually be involved in financing research at universities.