Advanced Search
MyIDEAS: Login to save this article or follow this journal

Opportunity Cost Of Educational Human Capital Investment. Application For The Position Of Beneficiary-Investor

Contents:

Author Info

  • Florea Voiculescu

    (“1 Decembrie 1918†University of Alba Iulia)

Registered author(s):

    Abstract

    The present paper focuses on providing a model of applying the opportunitycost concept on investments in human educational capital. In the first part we haveshown that the real costs of educational capital investment does not involve direct andindirect educational costs only but also the opportunity costs, i.e. the earnings that arelost by choosing to invest in education (and not in something else). From our researchthere results the fact that the share of the opportunity cost within the total of theinvestment in educational capital is 60% that is a great share in rapport with other typesof investments. Further on, we have shown that the recovery of the investment isdetermined by two main factors: money and time. The first factor is the growth of revenuethat the skills acquired through higher education bring into relation with the situation"without education" and the second is the duration measured in years, in order that thequestion of revenue growth, investment are fully recovered and bring additional revenue(similar profit). The main conclusion of the present paper is that investment in educationhas a significant positive effect on the dynamics of the relationship between age andearnings, which weakens or even undoes the effect of the high level of opportunity cost ofthis type of investment. The argument for investment in human capital and education plus"non-market income" or "non-monetary effects" of education relates mainly to the rolethat education has on the quality of life. As a long term investment, education brings apermanent increased certainty of a better situation and it increases social developmentand social promotion.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://oeconomica.uab.ro/upload/lucrari/1120092/15.pdf
    Download Restriction: no

    Bibliographic Info

    Article provided by Faculty of Sciences, "1 Decembrie 1918" University, Alba Iulia in its journal Annales Universitatis Apulensis Series Oeconomica.

    Volume (Year): 2 (2009)
    Issue (Month): 11 ()
    Pages: 15

    as in new window
    Handle: RePEc:alu:journl:v:2:y:2009:i:11:p:15

    Contact details of provider:

    Related research

    Keywords: opportunity cost; educational human capital; investment in education;

    Find related papers by JEL classification:

    References

    No references listed on IDEAS
    You can help add them by filling out this form.

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:alu:journl:v:2:y:2009:i:11:p:15. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dan-Constantin Danuletiu).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.