Human Capital Theory

Traditional approaches to labor economics posit workers as homogeneous, which can make it difficult for scholars to identify and learn from the complexities of a nation's workforce. In this book, economist Jeremiah M. Allen provides new ways to make sense of the concept of human capital.

The book begins with foundational concepts in economics. Later chapters explore worker heterogeneity in labor markets, long-run equilibrium, and economic decisions based on worker preference and ability. The book also contextualizes concepts related to human capital, including skillset diversity, worker preferences, and worker ability. By integrating prospect theory and expected utility, the book draws connections between microeconomic principles and fundamentals.

Human Capital Theory examines real-world scenarios and economic phenomena, equipping students, researchers, and scholars with the tools needed to analyze and conceptualize human capital today. Readers will come away from the book with enhanced knowledge of labor economics in the context of education economics and policy.

Explains human capital theory and contextualizes key microeconomic principles Highlights key concepts related to labor markets and workforces Explores worker heterogeneity in economic modeling, offering insights into dynamic labor market outcomes

Autorentext

Jeremiah M. Allen is Emeritus Professor at the University of Lethbridge in Alberta, Canada. He served as Chair of the Economics Department at the University for more than ten years during his tenure. Allen is a labor economist with a special focus on human capital and education economics

Inhalt

Chapter 1: Introduction.- Chapter 2: Capital in a Real Economy.- Chapter 3: Human Capital Markets: Definitions and Fundamentals.- Chapter 4: Long-run Equilibrium: Two-Skill Markets.- Chapter 5: Long-Run Equilibrium: A Hierarchy of Skills.- Chapter 6: Workers Differ in Preferences.- Chapter 7: Workers Differ in Time Preference.- Chapter 8: Workers Differ in Ability: Ability is the Cost of Acquiring Skill-B.- Chapter 9: Workers Differ in Ability: Ability is the Probability of Acquiring Skill-B (Risk Averse).- Chapter 10: Workers Differ in Ability: Ability is the Probability of Acquiring Skill-B (Risk Neutral).- Chapter 11: Workers Differ in Ability: Ability is the Probability of Acquiring Skill-B (Risk Neutral), Part II.- Chapter 12: Workers Differ in Ability: Ability is the Probability of Acquiring Skill-B (Risk Neutral), Part III (?).- Chapter 13: Human Capital and the Economics of Education.