Examination of fiscal expenditures on education and research as human capital investments

California ' S Fiscal Returns on Investments in Higher Education

Copyright 2012 Jon Stiles, Michael Hout & Henry Brady, all rights reserved. ABSTRACT The ongoing budget crisis in California raises many questions about the most effective ways to allocate resources in ways which sustain future investments. In this paper, we consider two questions: What are the benefits to the state for investing in higher education? And, how do current educational investments ...

School Policy: Implications of Recent Research for Human Capital Investments

Human Capital Investments in Asymmetric

We consider a tournament between two workers of different abilities who choose both human capital investment and effort. The employer can influence the workers’ behavior by determining the sequence of human capital investments, i.e. the training design. The workers can either invest simultaneously or sequentially with the favorite being the first mover or sequentially with the underdog as first...

Safeguarding Specific Human Capital Investments

When a firm changes its unique mix of products, markets, and technologies, some of employees’ previously acquired human capital depreciates. As a result, the firm can credibly renegotiate down employees’ quasi rents, which it had promised them as a reward for their human capital investments. We show that linking employees’ pay to total firm value, a widely observed phenonemon in practice, can m...

Human Capital Accumulation and Endogenous Public Expenditures

In this paper, we present an overlapping generations model where individuals accumulate human capital through formal schooling. We model the role of the public sector in schooling as one of collecting taxes from households and providing inputs to the learning technology. Public expenditures on schools are determined endogenously. Under plausible restrictions, our model's predictions qualitative...