Institutions of Higher Education in the Russian Federation: Budgetary and Private Impact of Education at the University Level

Abstract

This article considers at the university level the graduates’ income information, as well as budgetary and private cost estimates to determine budgetary and private impact of education using the calculation of internal rate of return. Since the graduates’ income information is available for only three-year period after the graduation, the synthetic profile of the graduates’ income during their lives is constructed according to the regional microdata. Results of the calculation show that the average impact of higher education is about 9 %, which is consistent with other estimates. In addition to list of universities indicating their impact, the article presents conclusions and recommendations, based on the analysis of the impact’s types and the correlation with other parameters, particularly with Unified State Examination scores for entry into higher education. The article’s value consists in demonstration of the possible approach for estimates, considering impact of investment in higher education at the university, faculty or department level. Researchers of the future can build on methodology and estimates, presented in this article, to obtain more accurate and reliable data on private impact of investment in higher education.