Determination of Optimal Schooling Level

Although numerous books have discussed the rate of return to education, only few books have examined the optimal schooling levels. This distinguished book presents the issue of optimal schooling levels in a new approach by explaining all methods of determination. In economics, there are two ways to conceptualize optimal educational attainment; the first way presents the literature of human capital models. In these models, individuals accumulate their human capital through acquiring high levels of schooling depending on the future income streams (returns to education) and the discounting rates of interest. These models consider education as an investment good. The second way formulates optimal schooling levels through education production function in which the output (education) is a function in the inputs (family and school characteristics).