Human capital III

To make the discussion more attractive, attention focuses on one particular type of human capital investment - whether or not to attend a four-year university or college. The principles we point to here apply to investment in all types of education and training.

Should an individual attend college? From a human capital point of view the answer depends on the monetary benefits relative to the costs. There are two different strategies to the precise nature of these benefits and costs. Strategy one is to finish high school and then begin full time work at age 18 working continuously until age 65 which results in the age/earnings. The second strategy is to attend college for four years from age 18 to 21 then work continuously from age 22 to retirement at age 65.