Education, Risk and Efficiency in Human Capital Investment

Research output: Book/ReportOther report


The efficiency of the process of investment in human capital through education is of considerable importance both to the individuals involved and to the wider economy. The paper develops an analytical framework in which issues of the
efficiency of such investment can be considered alongside its interface with the operations of the labour market, and in which the risks posed by such educational investments when the labour market is less than fully efficient can be analysed. These issues are of particular relevance in the context of the major
expansions in higher education which have taken place in recent years, not least in China, which is now second in its share of all 25 – 64 year olds internationally with tertiary education. The paper therefore complements its theoretical analysis with an empirical investigation of the risk factors which impact on the efficiency of this large-scale educational investment for individual graduates and for the wider economy.
Original languageEnglish
PublisherDepartment of Economics and Related Studies, University of York
Number of pages38
VolumeDiscussion Papers in Economics
Publication statusPublished - 2012


  • Human Capital
  • Risk
  • Educational Investment

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