Abstract
This paper demonstrates that the non‐inheritability of human capital makes investment in it fundamentally different from investment in physical capital when lifetime is uncertain. A simple two‐period model is used to highlight the effect of lifetime uncertainty on the optimal investment in human capital with and without markets for life insurance.
| Original language | English |
|---|---|
| Pages (from-to) | 439-448 |
| Number of pages | 10 |
| Journal | Economic Inquiry |
| Volume | 14 |
| Issue number | 3 |
| DOIs | |
| State | Published - Sep 1976 |