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Chapter 9: The Economics of Education. Overview robust relationship between education and earnings. Why? What determines the level of education selected.

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... konulu sunumlar: "Chapter 9: The Economics of Education. Overview robust relationship between education and earnings. Why? What determines the level of education selected."— Sunum transkripti:

1 Chapter 9: The Economics of Education

2 Overview robust relationship between education and earnings. Why? What determines the level of education selected by an individual?

3 Human capital model human capital - an individual’s productive capacity. human capital may be increased by investments in: –education, –training, and –health care. individuals with more human capital receive higher pay (since they are more productive).

4 Optimal investment in education invest in additional education only if benefits is at least as large as costs.

5 Costs of college education direct costs (tuition, books, supplies), forgone earnings (opportunity cost of time), and psychic costs.

6 Benefits of college education higher expected earnings, more pleasant jobs, lower expected unemployment rates, and psychic benefits.

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8 15 Yaş ve Üzerindeki Nüfusun Eğitimleri İtibariyle İstihdamdan Kazandıkları Ortalama Gelir YaşİlkOrtaYüksek Okul 15 – 246.3238.3647.819 24 – 3412.51016.80321.235 35 – 4413.44420.28032.921 45 – 5415.67622.62840.152 55 – 6413.79819.85437.018

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10 Choice between high school and college degree

11 Eğitimin toplam maliyeti ve beşeri sermayesinin zamanla yıpranması Yaş ilermesi

12 Factors influencing human capital investment interest rates, the age of the individual, the costs of education, and the wage differential between high school and college graduates.


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