Chapter 09 - Lecture Outline

Chapter 09 - Lecture Outline - ChapterNine

Info iconThis preview shows pages 1–8. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter Nine Human Capital Theory: Applications to Education  and Training Chapter 9 1
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Learning Objectives Factors that determine the market rate of  return to education Is education economically worthwhile? Is education a predictor of greater  productivity? Market signalling and screening On-the-job training Government-funded training programs Chapter 9 2
Background image of page 2
Human Capital Theory Investments are made to improve   productivity and earnings Costs incurred with the expectation of  future benefits Benefits must exceed costs Chapter 9 3
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Human Capital Theory Costs: Costs: Direct costs books, tuition Opportunity cost   income forgone Private costs vs. social costs Real costs vs. transfer costs Benefits Consumption vs. Investment Benefits Private benefits vs. social benefits Chapter 9 4
Background image of page 4
Alternative Income Streams Chapter 9 5 Earnings 16 18 22 d Direct costs a Stream A b e Stream B c f Stream C Ag e
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Age-Earnings Profiles Common attributes:  Increase with age but at a decreasing rate Higher for those with more education Chapter 9 6
Background image of page 6
Optimal Human Capital  Investment   The optimal investment in human capital is  determined by comparing the costs and  the benefits of having and additional year  of education, using the following concepts: Marginal costs and benefits of education Rate of return on investment in education Chapter 9 7
Background image of page 7

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 8
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 09/12/2011 for the course RSM 392 taught by Professor Liu during the Spring '11 term at University of Toronto- Toronto.

Page1 / 23

Chapter 09 - Lecture Outline - ChapterNine

This preview shows document pages 1 - 8. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online