The Rate of Return to Investment in Tertiary Education in Hungary, 1999-2008
Judit T. Kiss

Abstract
According to Human Capital Theory, knowledge and skills incorporated in the individual can be referred to as capital and all activities with which present input make future yields while the productivity of the individual grows can be interpreted an investment. In this paper, we calculate the private and fiscal rates of return to higher education in Hungary for the period 1999 and 2008. Our empirical results suggest that higher education as a human capital investment yields great returns for the individual in Hungary but it is less lucrative, compared to the state, which is due to the significant taxes and para-fiscal charges on labour.

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