ECON 2A03 Lecture Notes - Lecture 20: The Employer, Human Capital, Marginal Product
9 Nov 2017
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Jane has 3 years of college, pam has 2, and mary has 1. Jane earns per hour, pam earns . . the difference in educational attainment is completely due to different discount rates and the returns to college (there is no unobserved heterogeneity). Therefore the ranking of their dis high, must be: Earnings increase with age and experience - concave shape. Upward sloping up the age of about 50. Increase is most rapid to age 40 or 44 for individuals with the most education at the age 4. Differential is wider between groups at age 50 than 20-30. , and mary earns and their wages reflect ir discount rates, low to ge 45-49. Estimates of private returns to schooling in canada, 1995. Rate of return is calculated relative to the next lowest education level. There are diminishing marginal returns - highest return takes place at bachelor"s degree. The return to education for women is higher.
