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Article
Publication date: 6 August 2024

Gindrute Kasnauskiene, Rokas Badaras, Rasa Pauliene and Alkis Thrassou

This study evaluates the economic effectiveness of higher education in Lithuania by measuring returns to investment in higher education for both individual university graduates…

Abstract

Purpose

This study evaluates the economic effectiveness of higher education in Lithuania by measuring returns to investment in higher education for both individual university graduates and the state, particularly aiming to discover how higher education investments impact economic returns at both micro (individual) and macro (national) levels.

Design/methodology/approach

A dual methodological approach has been applied, utilizing both the Mincer earnings equation and the full discounting method, to draw a clear distinction between the returns enjoyed by individuals and those accrued to the country. Calculations for individual economic returns are done using the most recent available Lithuanian Department of Statistics data on the wage structure, while national return on education was based on the State Tax Inspectorate and Lithuanian Public Finance databases.

Findings

The research confirms that Lithuanian investments in education positively influence both individual earnings and society at large, mainly due to the low cost of education and the high returns. For individuals, net present value varies from €126,000 to €224,000, and the internal rate of return is from 7% to 46%, with the highest return being for males working in companies of 50–249 employees and holding a bachelor’s degree. It is also noteworthy that one additional year spent in education increases earnings on average by 4.1%. The financing of first cycle studies costs the state two times less than second and third cycle studies. For this reason, the net present value (NPV) and internal rate of return (IRR) of first cycle studies are higher than those of second and third cycle studies.

Originality/value

While higher education is generally and globally seen as a way to ensure financial stability and career advancement at the individual level and socioeconomic development at the national one, the question of cost versus benefits at both levels is principal and diachronic. Our research quantifies the NPV and IRR of education investments and highlights the differential economic returns of various education levels, where policymakers can utilize these insights to inform strategic decisions regarding education funding and resource allocation. This study, therefore, provides explicit quantitative answers and presents individuals and policymakers with tangible results and practicable direction in their decision-making. The findings are applicable to the specific country-focus, but also constitute an applicable case study in the international context, particularly for European and other countries of comparable economic structure and developmental stage.

Details

EuroMed Journal of Business, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1450-2194

Keywords

Article
Publication date: 7 June 2024

Rasa Pauliene, Gindrute Kasnauskiene, Odeta Raudone, Vaida Liubauskiene and Demetris Vrontis

This study aims to examine the impact of organizational culture of medical institutions on employee motivation and professional burnout, with occupation (i.e. doctor, nurse and…

Abstract

Purpose

This study aims to examine the impact of organizational culture of medical institutions on employee motivation and professional burnout, with occupation (i.e. doctor, nurse and administration employee) being a moderator.

Design/methodology/approach

A quantitative method (survey) was used for this study in Lithuania (EU), with a sum of 235 fulfilled questionnaires being obtained online. IBM SPSS software was used for statistical analysis and testing hypotheses.

Findings

The research results reveal that organizational culture is significantly related to both employee motivation and professional burnout in Lithuanian medical institutions. Moreover, theoretical and executive implications highlight the requisite role of and manner in which organizational culture and employee motivation can reduce employee turnover, retain talent, limit employee burnout and overall strengthen the design and implementation of long-term human resource management planning.

Social implications

This research delineates, explicates and directs crucial aspects of medical institutions’ effective functioning, a concern of even the most developed nations, as health sector performance, individually, organizationally and collectively, is a natural principal factor of social well-being and health.

Originality/value

Further and unique to the extant research, the authors analyzed specific organizational interactions, which revealed different statistical relationships between organizational culture and doctors’, nurses’ and administration employees’ overload, lack of development and neglect. The authors, thus, identified that organizational culture does not have a statistically significant impact on neglect of doctors, nurses and administration employees; however, it does significantly influence overload and lack of development in all respondents’ groups.

Details

International Journal of Organizational Analysis, vol. 33 no. 2
Type: Research Article
ISSN: 1934-8835

Keywords

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