Investing in Human Capital: A Capital Markets Approach to Student Funding
Investing in Human Capital: A Capital Markets Approach to Student Funding
This study recommends employing “human capital contracts” wherein students agree to pay a percentage of their income over time in exchange for funds to finance their education. The main difference between “human capital contracts” and loans is the variable value of the payments students make during the repayment period. Their financial consequences, of risk transfer from students to investors and increased information regarding future graduates’ earnings, make the contracts an attractive alternative in funding higher education.
User Ratings and Reviews
5 Stars Immensly inspiring for the future
Well, I am slightly biased since the author is a friend of mine, but I’ll do my best to be neutral in this review.
This is a very good book that can help us (society) come up with a better way of financing higher education. We should be in a world where anybody capable should be allowed to go to university. Unfortunately, there are so many barriers, and the highest one is probably the financing one, i.e. how to pay for the education we want to receive, and how not to solely depend on the governement to pay for it. This book explains in great details, with lots of supporting data, how the creation of a new type of securities, human capital contracts, can allow us to solve this problem.
It is tremendously inspiring, and should become an essential part of any policy maker’s library.
Well done Miguel!!!
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