copyright © 2009 pearson education, inc. chapter 9 investments in human capital: education and...

Copyright © 2009 Pearson Education, Inc.

Chapter 9

Investments in Human Capital: Education and Training

Copyright © 2009 Pearson Education, Inc. 9- 2

Figure 9.1: The Optimum Acquisition of Human Capital


Figure 9.2: Alternative Earnings Streams


Table 9.1: Changes in College Enrollments and the College/High School Earnings

Differential, by Gender, 1970-2004


Figure 9.3:

Money Earnings (Mean) for Full-Time,

Year-Round Male Workers, 2005


Figure 9.4:

Money Earnings (Mean) for Full-Time,

Year-Round Female Workers, 2005


Figure 9.5: Investments in On-the-Job Training over the Life Cycle


Table 9.2: Labor Force Participation Rates, Part-Time Employment Status, and Hours of Work in the United States, by Gender (2005)


Figure 9.6: The Increased Concavity of Women’s Age/Earnings Profiles


Table 9.3: Percentages of Women among College and University Graduates, by

Degree and Field of Study, 1971 and 2004


Table 9.4: International Comparisons of Schooling, 2002-2003


Figure 9.7: The Benefits to Workers of Educational Signaling


Figure 9.8: The Lifetime Benefits and Costs of Educational Signaling


Figure 9.9: Requiring a Greater Signal May Have Costs without Benefits


Appendix 9A

A “Cobweb” Model of Labor Market Adjustment


Figure 9A.1: The Labor Market for Engineers


Figure 9A.2: The Labor Market for Engineers: A Cobweb Model


Appendix 9B

A Hedonic Model of Earnings and Educational Level


Figure 9B.1: Indifference Curves for Two Different Workers


Figure 9B.2: Isoprofit Curves for Two Different Firms


Figure 9B.3: The Educational/Wage Relationship


Figure 9B.4: Unwillingness of a Firm to Pay for More Education of Employees

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