"This the eighth lecture in the ""Lectures on Human Capital"" series by Gary Becker. This series of lectures recorded during the Spring of 2010 are from ECON 343 - Human Capital, a class taught every year by Gary Becker at the University of Chicago. In this class, Becker expounds upon the theory of Human Capital that he helped create and for which he won the Nobel Prize. Please see attached lecture notes, video annotations, and reading list for more information.
In the first hour of the lecture, Professor discusses the preference transmission model that he discussed in his Nobel Prize Lecture. However, in this lecture he deepens the analysis: he offers necessary and sufficient conditions for ""investment in guilt to happen"", he points out the plausibility of corner solutions in some of the choice variables, and he goes through the insights offered by the first order conditions of this rational choice model.
Then, he turns into what he calls a ""much more traditional human capital problem"" by introducing investment in education. He proposes a model in which the individuals face the decision whether or not to go to college. In this model, the individuals compare the lifetime earnings differential of going to college versus the foregone earnings plus the tuition costs. The ratio of the benefits with respect to the costs is defined as the return of going to college.
Key concepts: bequest, foregone earnings, investment in guilt, lifetime earnings differential, returns to education, schooling decisions."
"This series of lectures recorded during the Spring of 2010 are from ECON 343 -- Human Capital, a class taught every year by Gary Becker at the University of Chicago. In this class, Becker expounds upon the theory of Human Capital that he helped create and for which he won the Nobel Prize.
In total, there are 19 lectures. Each lecture includes a short description of topics covered as well as topical keywords. The interested viewer is also provided with references to books and journal articles from Gary Becker's own original research that bear on the topics discussed in each lecture. Additionally, the viewer is also referred to the appropriate section of a freely available and informal set of student notes. These lecture notes are provided as-is and the author, Salvador Navarro Lozano cannot accept responsibility for any typos or errors. Much of the lecture material already appears in one of Gary Becker's academic books and those remain the best source of information in case of any doubts.
Over the years, thousands of graduate students in Economics, Sociology, Public Policy, and other fields have benefited from the teachings of Gary Becker in his Human Capital class. We hope that by providing these lecture videos and notes that people around the world can increase their own human capital and enjoy studying this fascinating subject of human capital as taught by Gary Becker.
Filmed by: Joey Brown Lecture Summaries: Jorge L. Garcia Lecture Notes: Salvador Navarro Lozano Supported by: The Becker Center at the Booth School of Business at the University of Chicago"
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