What happens to a worker''s optimal amount of schooling

Reference no: EM131923434

Problem

1. Suppose that the skills acquired in school depreciate over time, perhaps because technological change makes the things we learned in school obsolete. What happens to a worker's optimal amount of schooling if the rate of depreciation increases?

2. Suppose that workers differ in their ability, but have the same rate of discount. Is it possible for the more-able workers to choose less schooling? Why?

Reference no: EM131923434

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