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Returns to Education and Risky Financial Investment


  • Sarah Brown

    () (Department of Economics, The University of Sheffield)

  • Gaia Garino
  • Karl Taylor

    () (Department of Economics, The University of Sheffield)


The aim of this paper is to explore the relationship between wages, human capital and investment in financial assets with risky returns at the individual level. To explore this relationship from an international perspective, we analyse individual level data from the British Household Panel Survey, the German Socio-Economic Panel and the U.S. Panel Study of Income Dynamics. Our findings suggest that investment in financial assets with risky returns is positively associated with returns to human capital investment.

Suggested Citation

  • Sarah Brown & Gaia Garino & Karl Taylor, 2006. "Returns to Education and Risky Financial Investment," Working Papers 2006012, The University of Sheffield, Department of Economics, revised Oct 2006.
  • Handle: RePEc:shf:wpaper:2006012

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    References listed on IDEAS

    1. Robert B. Barsky & Miles S. Kimball & F. Thomas Juster & Matthew D. Shapiro, 1995. "Preference Parameters and Behavioral Heterogeneity: An Experimental Approach in the Health and Retirement Survey," NBER Working Papers 5213, National Bureau of Economic Research, Inc.
    2. Trostel, Philip & Walker, Ian & Woolley, Paul, 2002. "Estimates of the economic return to schooling for 28 countries," Labour Economics, Elsevier, vol. 9(1), pages 1-16, February.
    3. Sarah Brown & Karl Taylor, 2005. "Wage Growth, Human Capital And Financial Investment," Manchester School, University of Manchester, vol. 73(6), pages 686-708, December.
    4. Robert B. Barsky & F. Thomas Juster & Miles S. Kimball & Matthew D. Shapiro, 1997. "Preference Parameters and Behavioral Heterogeneity: An Experimental Approach in the Health and Retirement Study," The Quarterly Journal of Economics, Oxford University Press, vol. 112(2), pages 537-579.
    5. Shaw, Kathryn L, 1996. "An Empirical Analysis of Risk Aversion and Income Growth," Journal of Labor Economics, University of Chicago Press, vol. 14(4), pages 626-653, October.
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    More about this item


    Education; Financial Investment; Human Capital; Wages.;

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General

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