Qulb e Abbas

Investment Mechanism in Education

(Assumptions / guess)
School choice is one of the widely discussed topics in Education.
???? Parents / Policy Makers / Government …. Types of school for
their child.
Human Capital Theory (1960)
The theory states “education increases people's general mental
capabilities technical skills
Thereby increasing their productive potential in the labor force.
Assumptions for Good Earning
1. Skill base leaning and Students
2. Social Status and Students
3. Instructional Status and Students
Assumption 1: Skill base leaning and Students
(2.1.1) Specific Skills Acquisition Mechanism
Specific job related skills acquired through education earn
more.
(2.1.2) Mental Attitudes and Ability Creating Investment
Mechanism
Ability to think and to reason rather than the mastery the
skills earn more.
(2.1.3) Social Attitudes Creating Investment Mechanism
By good behavior the people earn more.
Assumption 2: Social Status and Students
(2.2.1) Twin function of parental wealth and social connections
Mechanism
“Parent earning is high Son earning is also high “
(2.2.2) Twin function of personal Capacity Mechanism
Some children have good quality need to enhance the ability
Qulb e Abbas

Educated People earn more Less Educated People earn Less

No effect of parent position
Assumption 3: Instructional Status and Students
(2.3.1) Certificates as proxy measuring Mechanism
Quality Institute means High Earning
(2.3.2) Institutionalization for convenience and legitimization
Mechanism
Seniority give more earning (more experience more
Earning)
(2.3.3) Inertial (inertia) institutionalization of once rational
practice Mechanism
Right person for right job can earning more than the
certificate holder.
(2.3.4) Institutionalization for professional interest Mechanism
More Certificate / Higher Grade Earning high
(2.3.5) The Halo Effect (Nisbett and Wilson' Experiment)
More intelligent men are more likely to attain higher status or
earning
Conclusion Remarks
Assumption sometime gives true/right answer some time it misguide us.
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