1. Assume that human capital skills from education decay over time because the knowledge gained by young students becomes obsolete as technology becomes increasingly complex over the years. What happens to a worker's optimal amount of schooling if this depreciation or rate of decay increases? (Hint: remember the marginal benefit = marginal cost decision rule) 2. Assume that college graduates earn 50% more than high school graduates. It is typically thought that without accounting for ability levels, this 50% increase from going to college rather than working straight out of high school would be a biased measurement, as more able people are more likely to earn college degrees. If this is true, would we expect the true underlying effect to

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.