Investing in Human Capital: A Capital Markets Approach to Student Funding

Investing in Human Capital: A Capital Markets Approach to Student Funding

by Miguel Palacios Lleras, Nicholas Barr
     
 

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ISBN-10: 0521039525

ISBN-13: 9780521039529

Pub. Date: 08/18/2007

Publisher: Cambridge University Press

This study recommends employing "human capital contracts" wherein students agree to pay a percentage of their income over time in exchange for funds to finance their education. The main difference between "human capital contracts" and loans is the variable value of the payments students make during the repayment period. Their financial consequences, of risk

Overview

This study recommends employing "human capital contracts" wherein students agree to pay a percentage of their income over time in exchange for funds to finance their education. The main difference between "human capital contracts" and loans is the variable value of the payments students make during the repayment period. Their financial consequences, of risk transfer from students to investors and increased information regarding future graduates' earnings, make the contracts an attractive alternative in funding higher education.

Product Details

ISBN-13:
9780521039529
Publisher:
Cambridge University Press
Publication date:
08/18/2007
Edition description:
New Edition
Pages:
252
Product dimensions:
5.98(w) x 8.98(h) x 0.59(d)

Table of Contents

List of figures; List of tables; Foreword; Acknowledgements; Introduction; Part I. The Problem of Financing Education: 1. The value of education; 2. Market failure in the financing of education; 3. The need for alternatives to traditional funding; Part II. Equity-Like Investments to Finance Education: 4. The evolution of human capital contracts; 5. How human capital contracts work; 6. The case for human capital contracts; 7. Human capital options; Part III. Implementing Human Capital Contracts: 8. Hurdles in the implementation of human capital contracts; 9. Lessons from the implementation of income-contingent loans; 10. Government-driven implementation of human capital contracts; 11. Conclusion; Appendices; Notes; References; Index.

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