Cost-Benefit Analysis of Technical and Professional Trainings in Iran

Abstract

In general, the scarce resources are efficiently allocated to achieve the economic and social goals of an economy. This means the factors of production including labour force and capital stock must be allocated using rational and scientific approaches. This means investors need to be able to evaluate the cost-benefit of investment in order to make informed and efficient decisions. In this article, we analyze the cost-benefit of technical and professional trainings in Iran. Three courses which comprise skilled labor force, first-class and second-class labor forces are considered in this study and then the cost-benefit methodology is employed. This methodology can be used in future cost-benefit studies of technical and professional trainings. The result obtained from the analysis shows that the educational rate of return in all three courses is higher than the rate of return in the participation papers market in Iran. This result obtained after adjusting the effects of individual ability on their income and correcting the adjustment effects of employment.

Keywords

• cost-benefit analysis
• educational rate of return
• technical and professional trainings