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Personnel economics assignment week 2
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  • Course
  • Personnel Economics (EBM678A05)
  • Institution
  • Rijksuniversiteit Groningen (RuG)

Personnel economics assignment week 2 a. Why do you want to invest in higher education, according to Lazear & Gibbs in chapter 3? b. Why do you want to invest in higher education, according to Weiss? c. What is the principal difference between Weiss’ explanation and that of Lazear & Gibbs? ...

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  • September 12, 2021
  • 4
  • 2020/2021
  • Case
  • Nvt
  • 7-8

Subjects

  • personnel economics
  • assignment week 2
  • personnel economics assignment week 2
  • assignment about human capital theory
  • why do you want to invest in higher education
  • according to lazear amp gibbs in chap

Written for

  • Rijksuniversiteit Groningen (RuG)
  • Msc Human Resource Management
  • Personnel Economics (EBM678A05)
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Assignments Lecture 2 on Personnel Economics 2016-2017


Cijfer/Grade = 7

Assignment about Human Capital Theory
a. Why do you want to invest in higher education, according to Lazear & Gibbs in
chapter 3?

Investing in higher education will provide benefits beyond increased earnings. Lazear &
Gibbs mentioned that one of those benefits is the pure joy of learning and that another benefit
could be that education makes you more effective at home or leisure activities or increases
your enjoyment of travel/literature. Because the current labor market values skills much more,
higher education is becoming a much better investment. Lazear & Gibbs state that in
comparison to other investments an university degree pays off with a relatively high internal
rate of return. For instance, this is notable when the increases in wages exceed the education
costs.

b. Why do you want to invest in higher education, according to Weiss?

According to Weiss people with higher levels of education tend to have higher wages. Weiss
also mentioned that higher educated people have lower propensities to quit or to be absent, are
less likely to smoke, drink or use illicit drugs, and are generally healthier. So, a higher
education is favourable for workers, but also for employers. Because with higher educated
workers the company will reduce their costs of sickness and job turnover.




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