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ERIC Number: EJ1407421
Record Type: Journal
Publication Date: 2023
Pages: 13
Abstractor: As Provided
ISBN: N/A
ISSN: ISSN-2336-2375
EISSN: EISSN-1803-1617
How Much to Invest and What Degree to Get?: Education as a Strategy on the Labour Market Scale
Luis Antonio Andrade Rosas; Perla Lomelí
Journal on Efficiency and Responsibility in Education and Science, v16 n3 p173-185 2023
When workers hear about a possible promotion, it is common for them to get training, and they can do so through education. However, there is the possibility that the worker needs to receive a salary according to the knowledge acquired in such training. In this study, considering a population of employed workers with incomplete secondary school, we apply game theory concepts to explore whether workers can train through study. If so, the model shows the percentage of the salary the worker is willing to invest in his education. Furthermore, the cost of studying implicitly involves an opportunity cost, deduced quantitatively in the model. In conclusion, our article defines specific thresholds to decide if the worker should study, the economic investment, and the time he would spend on it, depending on how strict the company is in auditing. The analysis does not define a Nash equilibrium since the company's reaction is not considered.
Czech University of Life Sciences Prague. Czech University of Life Sciences Prague, Kamýcká 129, Prague 6 - Suchdol 165 00, Czech Republic. e-mail: editor@eriesjournal.com; Web site: https://www.eriesjournal.com/index.php/eries
Publication Type: Journal Articles; Reports - Research
Education Level: Higher Education; Postsecondary Education
Audience: N/A
Language: N/A
Sponsor: N/A
Authoring Institution: N/A
Grant or Contract Numbers: N/A