Week 4 Assignment
Chapter 18, Problem #3
Capital as used in our text (human capital) can refer to schooling, a computer training course, expenditures on medical care, and lectures on the virtues of punctuality and honest (Becker, 2008). Because these things are used to enhance a person’s life or make a person more knowledgeable or skilled they are considered to be investments in human capital. These things are investments because they make us better in certain ways and will benefit us in the long run in terms of wages, knowledge, skills, and a better way of life.
Education would be considered capital because an education is an investment in someone and their future. Continuing one’s education through college or other sources enhances a person’s life in that it teaches them new skills and gives them more knowledge thus making them more knowledgeable. The return to an investment in a college education can result in higher wages. It also gives you a return in the form of one’s stock of knowledge skills and talents (Case, Fair, Oster. 2009).
When measuring the returns of the investment you could do studies on graduates and employment. The number of graduates and the number of these graduates who go on to gain employment. The wages of these graduates would have to be considered also. The studies would be very in depth and large in number if you wanted to get a clear picture of the return on the investment of an education.
This topic reminds me of something I learned when just starting my education again after twenty years. In one of the first classes I took we learned than continuing our education be it through college or just reading the daily newspaper can only benefit us for the positive. It is a daily investment that we make in ourselves and the returns are limitless. Each day we learn something new and the return on learning something new is the betterment or the enrichment we gain from that learning. The returns can be...