Economic Rates of Return on Higher Education in Greece: Master vs PhD

Abstract

Given the increasing demand for postgraduate studies in Greece, the question arises whether master’s or doctoral studies are more economically efficient for individuals not pursuing an academic career, where PhD is mandatory. Therefore, the aim of this article is the comparative study of the economic rates of return of Master’s and Doctoral education. To achieve this aim, the methodology used is based on the extended Mincer equation adapted to the Greek reality. This research uses data from the Household Budget Survey (HBS). The HBS survey was conducted by the Hellenic Statistical Authority covering 6196 private households throughout the country. This paper’s contribution lies in the comparative analysis of the rates of return of master’s and doctoral level graduates’ studies in the Greek labor market.