TY  - BOOK
AU  - Leibowitz,Arleen
ED  - National Bureau of Economic Research.
TI  - Years and Intensity of Schooling Investing
T2  - NBER working paper series
PY  - 1974///
CY  - Cambridge, Mass.
PB  - National Bureau of Economic Research
N1  - August 1974; Hardcopy version available to institutional subscribers
N2  - An essential feature of schooling is not only that it occurs in a different site than most on-the-job training but also that it is more intensive. That is, a smaller proportion of gross potential earnings is sacrificed in on-the-job training than in schooling.  In estimating human capital earnings functions it has generally been assumed that during schooling 100% of gross potential earnings are invested in all years, while in on-the-job training this percentage is smaller and is a declining function of age. This assumption has been quite useful since it allows the identification of an estimate of the rate of return on schooling from a regression of earnings on years of schooling. This paper argues that the percentage of gross earnings invested may fall below 100% well before schooling is ended, that this percentage is likely to be correlated with years of schooling, and thus this procedure yields only a biased estimate of the rate of return to schooling
UR  - https://www.nber.org/papers/w0049
UR  - http://dx.doi.org/10.3386/w0049
ER  -