Human capital

Topics Discussed in Class

• Basic Theory.

• Heckman's dynamic model.

• Selection bias and omitted variables bias.

• Signalling models.

Readings Discussed in Class (in order of discussion)

• Becker, Gary (1975). Human Capital.

• Heckman, James (1976). "A Life Cycle Model of Earnings, Learning, and Consumption." Journal of Political Economy. 84(4): S11-S44.

• Willis, Robert, and Sherwin Rosen (1979). "Education and Self-Selection." Journal of Political Economy. 87(5): S7-S36.

• Spence, Michael (1973). "Job Market Signalling." Quarterly Journal of Economics. 87(3): 355-374.

• Heckman, James and Chris Tabor (1998). "Explaining Rising Wage Inequality: Explorations with a Dynamic General Equilibrium Model of Labor Earnings with Heterogeneous Agents." Review of Economic Dynamics 1: 1-58.

Notes

Homework

Extra readings

• • Ben Porath, Yoram (1967). "The Production of Human Capital and the Life-Cycle of Earnings." Journal of Political Economy. 75: 352-365.

  • Griliches, Zvi and Gary Chamberlain (1975). "Unobservables with a Variance-Components Structure." International Economic Review. 16(2): 422-449.

  • Mincer, Jacob. (1974) Schooling, Experience and Earnings. NBER.