Here we are at Darden’s graduation weekend. The Class of 2010 justifiably celebrates the achievement of an MBA degree and various other awards and recognitions. This follows a great deal of hard work, long hours, and the expense of a lot of money. By now, I never hear students question whether it was worth it. They know the answer: yes.
A new piece of research by Robert Barro of Harvard and Jong-Wha Lee of the Asian Development Bank confirms what the students already know. The researchers find that the return from investing in a year of tertiary education (college or graduate school) averages 17.9%. Compare that to the returns from investing in real estate, stocks, bonds, or most other asset classes, and you conclude that investing in your own human capital is about the best investment you can make.
Of course, monetary returns measure only part of the gain. Richard Feynman, the physicist and Nobel Laureate once said that the accolades meant little to him—what mattered was the “joy of finding things out.” Universities are replete with students and scholars who study simply for the joy of finding things out—and joy can’t be measured. Sure, come to a university to qualify for a higher salary. But better yet, come to a university for an education that prepares you to enjoy a life full of nuance, social awareness, and personal impact.
My hope for the graduates in Darden’s Class of 2010 is for educational success defined not merely in ROI, but also in joy.