Online Education’s Return Benefits and Economic Effects

Proposal: Online Education’s Return Benefits and Economic Effects
Name
University
Course
Instructor
Due Date
Proposal: Online Education’s Return Benefits and Economic Effects
Introduction
Given its flexibility and affordability, online learning in higher education has seen a significant surge in popularity within China in the recent past. Data showed that 1,949,189 out of 11,659,684almost 17 percent of learners in the Chinese higher education systems were enrolled as distance learners (Li & Wang, 2021). Consequently, the extent to which online education results in economic benefits for a learner is emerging as a topic of interest for those who are undecided about whether to pursue online education or traditional face-to-face learning. Li (2017) notes that the cost advantages of online learning make it an ideal mechanism that individuals can leverage to obtain private benefits such as the improvement of human capital.
Notably, tThe explosive growth of the internet and the significant investments by various institutions towards the development of online learning curricula places it as one of the ways through which adult learners can enhance their knowledge and skills. Thus, a study examining online education’s return benefits and economic effects can provide adult learners with the empirical evidence they require to determine whether they should pursue the various opportunities created by online distance universities.
Background Context
According to the human capital theory, education is a form of investment, where individuals invest time, effort, and resources in order to acquire knowledge and skills that will increase their future earning potential (Gillies, 2017). A decision to make an investment in education assumes that the returns to education will be greater than the costs of obtaining it. The human capital theory also emphasizes the importance of education in meeting the demands of a rapidly changing economy. As technological advancements continue to shape the economy, individuals must acquire new skills and knowledge in order to remain competitive in the job market (Cooper & Davis, 2017). Li (2018) notes that there have been a huge number of studies conducted to examine the benefits of education, with most of them suggesting that education plays a leading role in enhancing individual productivity.
Notably, two main approaches that have been applied in the measurement of the benefits of private education are the Mincerian rate of returns and the internal rate of return. The Mincerian rate of returns estimates the return on investment in education by measuring the relationship between an individual's level of education and earnings (Glocker & Storck, 2014). It assumes that education is a major determinant of earnings, and it measures the value of education in terms of its impact on earnings. The internal rate of return (IRR) is another approach that calculates the rate of return on investment in education over a specific period.
Online education started being considered a viable alternative to traditional higher education with the emergence of the internet, with the internet offering opportunities for universities and colleges to experiment with online courses (Li, 2017). However, it was not until the mid-2000s that online education really started to gain momentum, as technological advancements made it easier to deliver high-quality online courses and degrees (Li, Li. & Zhang, 2015). Since then, online education has become increasingly popular, with millions of students around the world enrolled in online courses and programs. The key drivers of online education include its ability to break down geographical barriers and expand access to education and its affordability (Li, 2018). Despite the many benefits of online education, there are also concerns about the quality of education and whether online degrees hold the same value as traditional degrees. Additionally, there are questions about the long-term economic impact of online education on both students and society. As such, there is a need for further research into the economic effects of online education, and to determine its viability as an alternative to traditional higher education.
Problem Statement
Data from the National Bureau of Statistics of China showed that the number of students receiving distance education in China accounted for 16.72 percent of all the students graduating from higher education, with Li and Wang (2021) positing that the number could be far more given that large proportion of adult learning is accomplished through distance learning. Despite the large number of students pursuing online education, scholars and researchers have dispensed minimal efforts toward analyzing the return of long-distance education. Though there exist several studies examining the benefits and costs of online education (Li & Wang, 2021; Hoxby, 2014; Castano-Munoz et al., 2016), there is still limited literature on the costs and benefits of online education.
The advent of the pandemic saw increased investmentd uptake inof online learning technology owing to disruptions inas a popular learning traditional educationmethod owing to the high demand for higher education. Cconsequently, there is an increasing desire for learners to identify the benefits associated with an investment in higher education. To this end, the present study is keen to delineate the economic benefits of online education and its overall effect on the economy.
Research Question
Evidently, tThere is a need to provide potential students with information on the benefits associated with an investment in online learning so that they can make the decisiondecide on whether to pursue distance learning. In order tTo investigate the benefits and costs associated with online education, the key research question that shall be investigated in the paper shall be:
RQ: To what extent does the return on investment of online education compared to traditional in-person education in terms of economic outcomes such as earnings, employment, and career advancement?
Theoretical Framework
According to the human capital theory, education is a form of investment, where individuals invest time, effort, and resources in order to acquire knowledge and skills that will increase their future earning potential (Gillies, 2017). A decision to make an investment in education ass...