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The Return to Investment in Human Capital: The Case of the Value of Educational Attainment beyond the High School Diploma in Canada

Author

Listed:
  • Si, Xiaojing
  • Foley, Maggie
  • Boylan, Robert
  • Cebula, Richard

Abstract

Based on 2001 Canadian Census data, we investigate the return to investment in human capital in Canada. Internal rates of return (IRR) imply that the value of education varies by gender, level of education, and field of study. A bachelor's degree yields the highest IRR; the IRR from higher levels of education declines beyond the bachelor's degree. Women derive higher benefits from education than men. Finally, a bachelor's degree in engineering yields the highest IRR, followed by one in business/commerce and then by one in humanities.

Suggested Citation

  • Si, Xiaojing & Foley, Maggie & Boylan, Robert & Cebula, Richard, 2011. "The Return to Investment in Human Capital: The Case of the Value of Educational Attainment beyond the High School Diploma in Canada," MPRA Paper 53164, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:53164
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    References listed on IDEAS

    as
    1. David A. Dodge & David A. A. Stager, 1972. "Economic Returns to Graduate Study in Science, Engineering and Business," Canadian Journal of Economics, Canadian Economics Association, vol. 5(2), pages 182-198, May.
    2. Berger, Mark C., 1988. "Cohort size effects on earnings: Differences by college major," Economics of Education Review, Elsevier, vol. 7(4), pages 375-383, August.
    3. Gary S. Becker, 1962. "Investment in Human Capital: A Theoretical Analysis," NBER Chapters, in: Investment in Human Beings, pages 9-49, National Bureau of Economic Research, Inc.
    4. Cebula, Richard & Lopes, Jerry, 1981. "Determinants of Student Choice of Undergraduate Major Field," MPRA Paper 49826, University Library of Munich, Germany, revised 05 Feb 1982.
    5. Francois Vaillancourt, 1995. "The Private and Total Returns to Education in Canada, 1985," Canadian Journal of Economics, Canadian Economics Association, vol. 28(3), pages 532-554, August.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    economic education; investment in human capital; internal rates of return;
    All these keywords.

    JEL classification:

    • A22 - General Economics and Teaching - - Economic Education and Teaching of Economics - - - Undergraduate
    • A23 - General Economics and Teaching - - Economic Education and Teaching of Economics - - - Graduate
    • D10 - Microeconomics - - Household Behavior - - - General
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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