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Education in Nonmarket Production

Robert T. Michael

Journal of Political Economy 1973

Since an investment in human capital yields a return through time spent in the labor market, it may also yield a return through time spent in productive activities outside the labor market. This paper explores a framework in which these "nonmarket" returns may be analyzed. The model is implemented empirically to test implications pertaining to the partial effect of formal schooling on expenditure patterns and to estimate the magnitude of the nonmarket return to an investment in education.

DOI
10.1086/260029
Volume
81 (2, Part 1)
Pages
306-327
Language
en
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