i)Education does not make workers more productive but simply acts as a filter or screening device that enables employers to identify those with superior naturally ability
ii)Earning differentials reflects differrence in natural ability,motivation,social background ,sex,occupation e.t.c of workers as well as differences in education so that earning differential cannot be used as a measure of pure benefits of education.
iii)Private rate of return are meaningless as individuals do not make educational choices as though they are making purely financial decision.
iv)Rate of return analysis assumes full employment level of workers in the economy whereas many developing countries are experiencing unemployment of graduates’
v)It’s difficult to measure benefits accruing from any investment in education especially spillover benefits and indirect benefits
vi)It’s wrong assumption to say that salaries reflect productivity.
vii)The earnings of workers are more influenced by economic variables than by productivity consideration
sharon kalunda answered the question on March 7, 2019 at 11:39