Monday, August 27, 2012

Human capital I


The types of human capital investments that have received the most attention from labor economists are education and training. While schooling is partly a consumption good for many people (that is individuals pursue an education for the pleasure and satisfaction of experience) it is also treated by most individuals as a clear investment in their future. Every college student for example is aware of the costs of pursuing a college degree. These include the direct costs of tuition, books and other educational expenses and the indirect or opportunity costs in the form of forgone earnings from work that are sacrificed to attend school. Counter balanced against these costs are the anticipated benefits of increased earnings, more attractive employment opportunities and higher status and social prestige.

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