ECON 151 Lecture Notes - Lecture 1: Human Capital, Instrumental Variable, Inferior Good
11 Nov 2020
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Document Summary
L1 - introduction to human capital theory & data analysis. Intelligence understood in a restrictive sense is not a useful or even valid concept. In eoe, we will often talk about competences/skills/ability. Homo sapiens has many different kinds of competences : The brain is malleable: competences can be acquired. Brain malleability is higher at younger ages , but competences can be acquired at any point in time. The labor market generally value a multitude of different competences. Cognitive competences are not necessarily the most valued. True also for another human capital market like the mating market. Education as a private consumption good (<19th?) Ex: reading, watching a film, learning about history could be considered as leisure activity. Education a powerful tool for economic growth (19th/20th?) As the economy progresses, education contributes to growth. Also, education as a powerful tool for collective action. Tools to foster identity and homogenize nations (ex: colonization) Large public investment in education, justified by positive externalities.
