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Title: The Cost of School Time, Foregone Earnings, and Human Capital Formation
Resulting in 1 citation.
1. Parsons, Donald O.
The Cost of School Time, Foregone Earnings, and Human Capital Formation
Journal of Political Economy 82,2 (March-April 1974): 251-266.
Also: http://www.jstor.org/stable/1831177
Cohort(s): Young Men
Publisher: University of Chicago Press
Keyword(s): Earnings; Educational Returns; High School; Human Capital Theory; Part-Time Work; Schooling

A simple educational investment model is used to demonstrate that, if students are subject to borrowing constraints, foregone earnings are not identical to schooling time costs, since students will sacrifice leisure as well as earnings. Direct measurement of schooling hours and work hours of young males reveals that at the high school level the bulk of school hours results from foregone leisure. A review of the foregone-earnings measures used in a number of major human capital studies is undertaken to determine the approximate bias in human capital formation and rate-of-return estimates resulting from this source.
Bibliography Citation
Parsons, Donald O. "The Cost of School Time, Foregone Earnings, and Human Capital Formation." Journal of Political Economy 82,2 (March-April 1974): 251-266.