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Opportunity Costs How A College Education Increases Essay

Opportunity Costs How a college education increases one's human capital

It is a universal belief that a more educated workforce leads to an incredible human capital. Therefore, the thought of retaining higher educated graduates is important towards regions and cities maintaining competition among themselves. This eventually leads to technological and economic growth. While there has been a compilation of data from many regions and states in educational achievement, there also exist relentless research studies showing the impact universities and collage have (Frank, 2005).

A study by New York federal bank published in their Economic Geography journal in 2011 demonstrates that universities and colleges increase Human Capital in their regions. Utilizes educations Department data as from 1999 down to 2000 and also 2006 shows the magnitude of volume of college degrees attained in metropolitan regions. It also makes use of survey by American Community's data in estimating levels of human capital (Frank, 2005).

Because of unnoticeable positive relationship of human capital and college education in an area, policy makers have focused on the retention and generic expansion of graduates across regions. This is expected to generate significant successful human capital increase. However, the knowledge gained from development and academic research may have a great positive impact on the local economy resulting in increased demand for skilled labor. Additionally, the human capital levels present across regions will be affected by the degree type attained in the metropolitan region. For instance, if there are more science degrees then there will be science-oriented, human...

Technological improvement would lead to an outward shift that would add an advantage to both kinds of goods. In addition, it precipitates a workforce increase that would lead to exploitation of more factor resources, efficiency, and an improvement in the end production of goods. Use of resources inefficiently or unemployed resources would result due to inward shift. Frontier production possibilities would be affected by following examples:
1) Important supply of labor: the U.S. population according to recent founding is declining at an alarming rate, which greatly results in challenges to the growth of their economy. Similarly, in the next 30 years, nations like Italy and Japan will experience major changes to their human capital since the structure of their labor population has a large number of retirees.

2) Productivity factor changes, either capital or labor: So many things may impact land, capital or labor productivity. War decimates labor and capital. Both are damaged by environmental factors, as experience in sub-Sahara Africa and in America during 1930s dust bowl which affected farm production in America significantly. Another perfect example is misled economic policies liked the one that happened in South America 1960s and also 1970s. During that time, the discussion of poor countries' economic development created two major camps. One camp believed…

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Frank, R.H. (2005). The Opportunity Costs of Economics Education. The New York Times. Retrieved February 18, 2011 from:

http://www.nytimes.com/2005/09/01/business/01scene.html
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