Research On The Individual Investment Profits And Risk In Higher Education

We have stepped to the era of information economy since the middle of 20th century. The development of the information economy has strengthened the importantance of the higher education .Both the individuals and our government have invested more in higher education. During the past years, the higher education has developed quickly and acquired a series of achievements, however, this has led to some problems which have made individuals to care about the profits and risk more and more simultaneously .Related to the individual investment profits and risk in higher education, the following achievements have been gained in this paper:1. The studies related to the research on the individual investment profits and risk in higher education have been elaborated in this paper.2. This paper has analyzed the mechanism of gaining the individual investment profits in higher education, on the base of which, the gaining-profit- model has been established.3. On the basis of analyzing the mechanism of the individual profits and risk, an empirical research , the objects of which are the undergraduates of Grade 2005 has been done. The following conclusion has been drawn in this paper: The individual investment profits in higher education are higher than those in high school. The profits of the rural students are higher than those of the urban students. However, the individual investment profits in higher education are lower than other countries. The possible reason is the individual cost is high. The individual investment in the higher education is risky on loans. According to the conclusion, some advice has been given in this paper. The government should improve the system of stipends, study- loans and scholarship to encourage the students from the rural to accept the higher education. Secondly, the individuals should understand the investment risk .Not only the profits but also the risk should be considered to reduce the risk and increase the utility .From the view of making the policy, to increase the utility and simultaneously to avoid the risk should be one of the aims. Besides, the universities should innovate greatly to increase the utility and the scale of the higher education should be controlled moderately.