INVESTIMENFOS EM CAPITAL HUMANO NO BRASIL: UM ESFUDO SOBRE RETORNOS FINANCEIROS PRIVADOS DE CURSOS DE GRADUAÇÃO

Abstract

The Human Capital Theory assumes that higher schooling leads to higher earnings as productivity increases with schooling The fundamental result of this theory is tested, namely, that individual acquire education up to the point where the present value of future higher earning equal the present value of investment costs, focusing on university education. Based on urban Brazilian data we calculate private Intemal Rates of Retum and the Net Present Value for investments in human capital at the undergraduate level for the year 1995. Results indicate that it is not economically sensible to invest in an undergraduate degree if one does not work while studying, if tuition and direct costs, as well as foregone earnigs are taken into account. On the other hand, government financingwith lower than market interest rates improves private financial returns significantly.