ECON 1 Lecture Notes - Lecture 14: Human Capital
Document Summary
Eco 1 : introduction to economics- lecture 14: the new geography of jobs pt 1. Covered on a daily basis by the news. When major economic changes are measured and studied. Example: differences in hourly wage of men by education level. A high school dropout in 1980 makes . 80, now in 2011, an hs dropout makes. A college graduate in 1980 makes . 20, now in 2011, the same graduate will earn up to . 50 ; a difference in 25% Education matters as it increases your human capital and your ability to make more money. The change in the economic map in a city directly leads to the overall wealth of the area. 1945- 1980: physical capital (amount of public infrastructure; the physical product humans produce) 1980-2012: human capital (average education of workforce or share of workers with a college degree; the labor an educated worker can produce) Places with more college graduates tend to have higher economic output.
