Comment on each of the following statements:
a. Given the work life cycle of the “traditional” woman, it may be rational for women to invest in less human capital than men.
b. Older workers are less mobile geographically than younger workers.
c. An economic recession tends to stimulate college enrollment.
d. One of the disadvantages of Social Security’s benefit reduction rate (reducing benefits when earnings exceed a certain level during retirement years) is that it biases investment away from human capital and toward bonds and stocks.
e. The age–earnings profiles of Figure 4.1 clearly indicate that people with more education earn more than people with less education; therefore, personal spending on education is always a good investment.
Figure 4.1
