While uncertainty abounds in almost any decision on investment in schooling, it is mostly ignored in research and virtually absent in labour economics text books. This paper documents the scope for risk, discusses the tough disentanglement of heterogeneity and risk, surveys the analytical...

While uncertainty abounds in almost any decision on investment in schooling, it is mostly ignored in research and virtually absent in labour economics text books. This paper documents the scope for risk, discusses the tough disentanglement of heterogeneity and risk, surveys the analytical...

In this paper, we have used the standard Human Capital model to describe the post-compulsory schooling behaviour of Sri Lankans. We assumed that there is no uncertainty in the education system or in the labour market. Therefore, inthe steady-state, the earnings profile of one generation is a...