Is there a return-risk link in education?

Author: Pereira, Pedro Telhado; Martins, Pedro Silva

Corporate author:
Institute for the Study of Labour (Germany) (IZA)

Abstract:

Risk averse investors have to be compensated in higher expected returns when facing investments with higher risk. Education is an important investment therefore we use the results for 16 countries to test the positive relationship between return to education and the risk involved in this investment. It seems that most of the countries fit the pattern well: higher risk - higher return.

Published abstract reprinted by permission of the copyright owner.

Subjects: Skills and knowledge; Research; Teaching and learning; Finance

Keywords: Cost benefit analysis; Human capital; Measurement; Education; Training investment

Published: Bonn, Germany: IZA, 2001

Physical description: 8 p.

Access item:
ftp://iza.org/dps/dp321.pdf
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Series:
IZA discussion paper; no. 321

Statement of responsibility: Pedro Telhado Pereira and Pedro Silva Martins

Resource type: Paper

Call Number:
TD/TNC 66.417