Friday, August 31, 2012

Human capital V


Another type of cost of attending college is the opportunity cost of the earnings from work received by the high school graduate that the college student could have been making. The size of this cost depends on the earnings that a high school graduate is able to make and whether or not the person in college works full-time or part-time while in school. The opportunity cost of attending college may extend several years beyond age 22 if the college graduate begins work at a lower salary than what the high school graduate is earning at age 22. This might well be the case since the earning of the high school graduate will have benefited from four years of experience and training.

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