Stay in School or Start Working? - The Human Capital Investment Decision under Uncertainty and Irreversibility

@article{Bilkic2009StayIS,
  title={Stay in School or Start Working? - The Human Capital Investment Decision under Uncertainty and Irreversibility},
  author={N. Bilkic and T. Gries and Margarethe Pilichowski},
  journal={Labor: Human Capital eJournal},
  year={2009}
}
As the time of leaving school determines the level of academic achievement this timing decision is central for the human capital investment decision. Real option theory offers a new perspective of the human capital investment decision under uncertainty and irreversibility. Unlike other approaches we include accumulative schooling costs, and provide a full analytical discussion of all determinants of the decision to terminate education and enter the labor market. Further, as we are able to look… Expand
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