Chapter Learning Objectives

  • Recognize the broad trends in U.S. educational attainment levels, over the past 50 years.
  • Understand the fundamental properties of human capital investments.
  • Explain the factors responsible for fluctuations in college enrollment rates.
  • Explain why educational investments depend on the interest rate and how they vary with unemployment and workers’ innate abilities and are affected by capital market imperfections.
  • Recognize the problems inherent in estimating the return to educational investments.