Overview
The benefits of human capital investments are hard to define exactly, and hard to measure as well. However, various models have been proposed. The typical model utilizes OLS regression to estimate an equation such as
{% T = \alpha + \beta_1 S + \beta_2 X + \beta_3 X^2 %}
where
- {% Y %} is an annual salary
- {% S %} is a dollar amount invested in education
- {% X %} is the years of experience