The investment and return in education for AUC employees
In an effort to develop the country’s economy, the American university in Egypt (AUC) has introduced investment and return by upgrading the education and skills of its employees. The strategy is aimed at creating high-skilled and high-waged economy bearing in mind that Egypt falls under the third world country category. The introduction of education returns will create a world class group of skilled employees creating a route to economic prosperity, reduce social cohesion, and minimize income inequalities. The investment and return in education for AUC employees also will serve as a means of introducing innovations in the university workforce and improve technical expertise making them compete globally. The AUC employees do not require relying on low skilled lecturing jobs for living because Egypt is well placed to attract high economic growth, and produce high waged employees. The research comes after an understanding that the high rate of education deterioration in Egypt. Most lecturers move from public universities to private universities in search for better paying jobs (Fatma 27).
Human capital is a vital factor in determining the economic growth and new evidence in both the developed and developing countries. Investment in education has been one of the important strategies adopting by many nations because it promotes economic prosperity ("FINANCING EDUCATION – INVESTMENTS AND RETURNS." N.p., n.d. Web). On this context, AUC has considered investing in education as way of bring high returns in addition to promoting future success of its employees. Through investing in education, the AUC employee gets an opportunity to increase their education knowledge leading to increased wages and salaries. Moreover, the proposal will make a difference in education sector in Egypt because both the old and new universities have the same level of qualification for their employees. In addition, the education sector in Egypt will be able to reach international standards and compete with other universities in developed countries like United States of America.
Most organizations aim at improving the quality of their services with the least cost possible. A lot of problems limit the investment and return in education leading to lecturers delivering poor services to students. Providing and paying for required educational services has become a big problem in most universities in Egypt because of lack of adequate resources. Children who come from financially stable families have the opportunity of attending international universities and acquire global education. The introduction of education to AUC employees will equip them with enough knowledge and transform it to their students. According to USAID, Egypt has stressed more on education reform agenda aimed at increasing human development concerns and increasing the livelihood of education workforce. In addition, the international pressure forces most universities in Egypt adopt the modern education policies that ensure students get access to international education irrespective of the type of university attended.
On the other hand, the new education investment will be of great help to AUC employees. The strategy will require all employees to invest on their education through sacrificing their savings. The introduction of information technology and globalization of economic activities has increased the trend towards personal autonomy. The education sector has also changed increasing education demands for individuals and nations. In addition, the changes in production in education sector have been accelerated by changes in technology and the expansion of knowledge based economy (Card 1127–1130).
When AUC employees invest on education, a lot of benefits will follow them because education is the future of individual’s success. Many achievements are needed in acquiring the required education level where an individual is comfortable of the amount of salary received. AUC employees who will undertake the new education plan will enjoy increased pays and effective working conditions. In addition, the employees will see the benefits of their investment on education because new educational levels will boost their living standards. Development of new skills is an important aspect in the life of an individual. The American University in Egypt must maintain its image by ensuring all its employees have the necessary skills.
The country will also benefit because an increase in salary leads to a significant increase in tax, thus high revenue collections. The impact of human capital on national performance is measured by the gross domestic product (GDP) of a country. GDP is an important component of economic measure of a country because it captures the productivity of citizens. By investing in education, AUC employees will get a chance to improve the country GDP because of high productivity. Moreover, the costs and benefits incurred during the investment will benefit the country through percentage yields on revenue returns. Since the late 1950s return on investment in education has ever been estimated without anyone getting the exact value. Employees that saw the light before and invested on education cannot be compared with those advancing their education today in terms of salaries, job groups, and returns.
The difference between the workers and the Doctors
Whereas AUC employees seem to invest more on education, doctors also dedicate their investment in education but they get more returns compared to AUC employees. The health sector is more demanding than the education sector and the more education a doctor posses the high the amount they receive. In addition, doctors who invest more on education stand high chances of getting promotions that pay better salaries than teachers with the same level of education. Doctors also have high income and high savings rate that make any investment reasonable and bring more returns. AUC employees who will invest in education will only receive returns amounting to 10% pay rise while doctors are capable of receiving up to 30% pay rise from their investment on education. Doctors also invest much on education because they require higher education level in order to secure a better place in the competitive job market. Most health organizations only hire physicians who have attained a master’s degree and above. (Appleton 11-24).
The low return on education investment in Egypt is as a result of the challenges facing the education system since the Mubarak era. People working in the education sectors like AUC employees do not enjoy better fruits of investment as compared to doctors due to the education system needs and job market mismatch. The shortage of skills in the medicine sector in Egypt makes doctors who have attained higher educational levels get better returns in their education investment. In addition, teachers in Egypt are less valued and receive lower salaries that make them invest in education in order to qualify for employment internationally. In addition, some institutions pay their employees in relation to productivity making investing in education worthless. Doctors get more returns from education investment because the government values their work and those who learn new treatment methods are highly paid.
Works cited
Appleton, S. 2000. "Education and Health at the Household Level in Sub-Saharan Africa."
Center for International Development Working Paper No. 33. Cambridge, MA: Harvard University.
Card, D. "Estimating the Return on Schooling: Progress on Some Persistent Econometric
Problems." Econometrica 69 (5). 2001.
Fatma, H. Sayed. Transforming Education in Egypt: Western Influence and Domestic
Policy Reform. New York: American University in Cairo Press. 2006.
Financing education : investments and returns: analysis of the world education indicators.. 2002
ed. Paris: Organisation for Economic Co-operation and Development, 2003. Print.
USAID Egypt. Partnering for prosperity: 2004-2009 Accomplishments. 2010. Retrieved from:
http://egypt.usaid.gov/Deault.aspx?pageid=573
