COSTS AND REVENUES OF INVESTMENT IN ENTERPRISE-RELATED SCHOOLING

WIM GROOT; J HARTOG; H OOSTERBEEK

doi:10.1093/oxfordjournals.oep.a042152

COSTS AND REVENUES OF INVESTMENT IN ENTERPRISE-RELATED SCHOOLING

WIM GROOT^*, J HARTOG, H OOSTERBEEK

^*Corresponding author for this work

Research output: Contribution to journal › Article › Academic › peer-review

Abstract

In this paper a general specification of the wage equation is used to derive a marginal revenue equation for enterprise-related schooling. The optimal amount of investment in enterprise-related schooling is found by equating the marginal revenues and marginal costs. For the empirical analysis the wage equation, the marginal costs equation and the marginal revenue equation are estimated simultaneously. The empirical results show that both the marginal cost and the marginal benefits of training vary with a worker's level of ability. For a reference male who participates in ERS, the wage increase is about 34% of the average wage rate of participants.

Original language	English
Pages (from-to)	658-675
Journal	Oxford Economic Papers-New Series
Volume	46
Issue number	4
DOIs	https://doi.org/10.1093/oxfordjournals.oep.a042152
Publication status	Published - Oct 1994

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10.1093/oxfordjournals.oep.a042152

Cite this

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title = "COSTS AND REVENUES OF INVESTMENT IN ENTERPRISE-RELATED SCHOOLING",

abstract = "In this paper a general specification of the wage equation is used to derive a marginal revenue equation for enterprise-related schooling. The optimal amount of investment in enterprise-related schooling is found by equating the marginal revenues and marginal costs. For the empirical analysis the wage equation, the marginal costs equation and the marginal revenue equation are estimated simultaneously. The empirical results show that both the marginal cost and the marginal benefits of training vary with a worker's level of ability. For a reference male who participates in ERS, the wage increase is about 34% of the average wage rate of participants.",

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AB - In this paper a general specification of the wage equation is used to derive a marginal revenue equation for enterprise-related schooling. The optimal amount of investment in enterprise-related schooling is found by equating the marginal revenues and marginal costs. For the empirical analysis the wage equation, the marginal costs equation and the marginal revenue equation are estimated simultaneously. The empirical results show that both the marginal cost and the marginal benefits of training vary with a worker's level of ability. For a reference male who participates in ERS, the wage increase is about 34% of the average wage rate of participants.

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