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Gary Becker's Analysis

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(Becker, 1993) The theoretical framework is provided by Gary Becker’s analysis of the supply and demand curves for investment in human capital by individuals .The position of the demand curve is determined by the rate of return to a particular person on each additional money unit of investment. The position of the supply curve shows the ejective marginal financing cost to him, measured by the rate of interest on each additional money unit invested. The person will go on investing in education until the rate of return equals the rate of interest, at which point an equilibrium (the desired level of education) is reached.
The demand curve slopes downward as human capital invested increases, because the human capital is embedded in the person …show more content…

They examine how secondary school attainment in Indonesia affected or influence by household wealth and scholastic aptitude. They used Indonesian Family Life Survey (IFLS) which is long-spanning longitudinal dataset that allows them to follow cohort of children from when they were in primary school until they were adults. Also when sample taken, reached twelve years old, they took a direct measure of cognitive skills. Using the two mentioned characteristics of dataset, help them to measure the relative role of poverty and cognitive on individual’s education attainment. But according to the nature of my study, mostly I will concentrate more on role of poverty on an individual’s education …show more content…

The data show that Africans fare worse than Asians, who in turn have lower educational attainment than Whites. For example, only one-third of Africans in the 20 to 22 year age group completed secondary school compared with 80 percent of Asians and 90 percent of Whites. Multivariate analysis found that both household wealth and population group had significant effect on the highest grade passed. Within population groups there are no large differences by sex in educational attainment. While African girls advance more quickly through primary than African boys, by age 20, attainment is virtually equal by sex. Among 20 to 22 years old, Asian and Whites females are more likely to have had some post- secondary education than their male

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