human capital

what is human capital?

knowledge

adaptability to changing environments

working in teams

performing specific tasks

signaling innate ability

human capital production

innate ability

schooling (teacher quality, rigor, # of years)

family/neighborhood

peers

professional training

what effects decision to work after HS or pursue college?

tuiton

current wage

post college wage

discount factor

wage schooling locus

more school → higher earnings

marginal gain of additional years decreases

education as signaling device

higher ability workers see more productivity gains from additional education

economic factors influencing human capital production

economic/social externalities in education

productivity of human capital investments in k-12 education

credit market imperfection for higher education

info asymmetry

why education decision not left to private individuals?

social return>private return

productivity spillover among peers

civil participation

funding sources for H

parental support

scholarships

student loans

information asymmetry

school and teacher quality

which school, major,etc

true returns to education

funding opportunities

skill based technology changes

tech substitute mid/low skilled workers

inc demand for skill