Arbeitspapier
The risk-return trade-off in human capital investment
In this paper we analyze investments in human capital assets in a way which is standard for financial assets, but not (yet) for human capital assets. We study mean-variance plots of human capital assets. We compare the properties of human capital returns using a performance measure and by using tests for mean-variance spanning. A risk-return trade-off is revealed, which is not only related to the length of education but also to the type of education. We identify a range of educations that are efficient in terms of investment goods, and a range of educations that are inefficient, and may be chosen for consumption purposes.
- Language
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Englisch
- Bibliographic citation
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Series: IZA Discussion Papers ; No. 1962
- Classification
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Wirtschaft
Analysis of Education
Human Capital; Skills; Occupational Choice; Labor Productivity
- Subject
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educational choice
efficient frontier
human capital investment
mean-variance analysis
Humankapital
Bildungsinvestition
Bildungsverhalten
Rendite
Bildungsertrag
Risiko
- Event
-
Geistige Schöpfung
- (who)
-
Christiansen, Charlotte
Schrøter Joensen, Juanna
Skyt Nielsen, Helena
- Event
-
Veröffentlichung
- (who)
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Institute for the Study of Labor (IZA)
- (where)
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Bonn
- (when)
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2006
- Handle
- Last update
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10.03.2025, 11:43 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Christiansen, Charlotte
- Schrøter Joensen, Juanna
- Skyt Nielsen, Helena
- Institute for the Study of Labor (IZA)
Time of origin
- 2006
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