ECN 512 Lecture Notes - Lecture 7: Human Capital, Deskilling
Document Summary
Turn unskilled labour into skilled labour: example: learning to read. Basically, any activity with an educational component. A broad definition of human capital includes any form of investment which leads to an increase in a person"s well-being. It could stem from: an increase in a person"s productivity in either market or nonmarket work, an increase in a person"s satisfactory with time spent in market work, nonmarket work, or leisure. Wages provide the measurable return on human capital. Screen theory is that people get higher education to signal that they are intrinsically more productive workers, but that education in itself adds nothing to the productivity of workers/ Screening theory has use when an employer is screening potential job applicants through resume, first criteria they use to screen is education level completed. The significance of human capital theory for occupational choice. Is occupational choice influenced with the depreciation rate of human capital. Is there feedback from social discrimination into occupational choice.
