NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Investment in U.S. Education and Training

Jacob Mincer

NBER Working Paper No. 4844
Issued in August 1994
NBER Program(s):   LS

The current high rates of return to human capital stimulate a supply response via increased investments in education and training. The so increased human capital stock exerts downward pressures on the rates of return that reduce the skill differential in wages. This paper reports estimates of: the responses of investments in post-secondary education, measured by enrollments, to changes in the rate of return; responses of investment in job training, measured by incidence; and effects of accumulated human capital stocks, measured by educational attainment, on educational wage differentials. Enrollment responses and attainment effects are shown to be separated by a time lag of about a decade. The parameter estimates are based on annual CPS and NCES data, covering a recent 25 year period. If demands for human capital cease their acceleration, the rate of return is expected to decline about 25% over the current decade, judging by the estimated parameters and lags.

download in pdf format
   (443 K)

email paper

This paper is available as PDF (443 K) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w4844

Published: Research in Labor Economics, Vol. 17 (1998).

Users who downloaded this paper also downloaded these:
Mincer w0803 Human Capital and Economic Growth
Mincer w3581 Human Capital, Technology, and the Wage Structure: What Do Time Series Show?
Mincer w3208 Job Training: Costs, Returns, and Wage Profiles
Mincer and Polachek Family Investments in Human Capital: Earnings of Women
Mincer w4838 The Production of Human Capital and the Lifecycle of Earnings: Variations on a Theme
 
Publications
Activities
Meetings
NBER Videos
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us