EDUCATION AND THE DISTRIBUTION OF EARNINGS.

The article presents information on a theory concerning the distribution of earnings. This theory correlated investment in human capital with income distribution. According to this theory, the total earnings of any person after he has finished investing in human capital is equal to the sum of the re...

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Bibliographic Details
Published in:American Economic Review Vol. 56; no. 2; pp. 358 - 370
Main Authors: Becker, Gary S., Chiswick, Barry R.
Format: Article
Published: American Economic Association May66
Subjects:
Online Access:View this record in EBSCOhost
Description
Summary:The article presents information on a theory concerning the distribution of earnings. This theory correlated investment in human capital with income distribution. According to this theory, the total earnings of any person after he has finished investing in human capital is equal to the sum of the returns on his investments and the earnings from his original human capital. Thus, it is reported that the distribution of earnings in this framework is calculated by the shape and distribution of the supply and demand functions. The article also incorporates an analysis of the graphical representation of the earnings distribution.