Education, Training and Earnings - See: Chapter 9, Benjamin, Gunderson, Lemieux and Riddell Human Capital : - Skills. - Usually concerned with acquired skills. - Economic models of education and training are models of skill acquisition. - Affects the labour supply side of the market. - Determines how many people will have a particular type of skill. - Important implications for earnings: affects the type and value (productivity) of work people can do. - Modeling these decisions: - Education and training are viewed as investment decisions. - Investment: give up something now in the expectation of some future return. Education as an Investment: - Post-secondary education is usually the concern: - Why? Outcome of choice not compulsion! - Framework can still be used to think about returns from lower levels of education
Education, Training and Earnings - See: Chapter 9, Benjamin, Gunderson, Lemieux and Riddell Human Capital : - Skills. - Usually concerned with acquired skills. - Economic models of education and training are models of skill acquisition. - Affects the labour supply side of the market. - Determines how many people will have a particular type of skill. - Important implications for earnings: affects the type and value (productivity) of work people can do. - Modeling these decisions: - Education and training are viewed as investment decisions. - Investment: give up something now in the expectation of some future return. Education as an Investment: - Post-secondary education is usually the concern: - Why? Outcome of choice not compulsion! - Framework can still be used to think about returns from lower levels of education