The private net present value and private internal rate of return to becoming a nurse in Great Britain |
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Authors: | Stephen Morris Alistair McGuire |
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Affiliation: | 1. Guanghua School of Management, Peking University , Beijing 100871, China snjin28@yahoo.com;3. Guanghua School of Management, Peking University , Beijing 100871, China |
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Abstract: | The private net present value and private internal rate of return to becoming a nurse in Great Britain is estimated. The calculations are made using the standard equations inputted with data from the New Earnings Survey and the British Household Panel Survey. Basic age-earnings profiles are adjusted for mortality, unemployment, other causes of economic inactivity, and discontinuation from training. The conclusions are that: (1) there is a high private internal rate of return to becoming a nurse in Great Britain relative to other occupations; (2) using the internal rate of return criterion is inappropriate when there exists a crossover marginal time preference rate, which is shown to be the case here; and, (3) using the net present value criterion there are net financial benefits to becoming a nurse in Great Britain for individuals with a marginal time preference rate of 8-13% or more. |
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