When introducing human capital theory, the textbook implicitly assumes that people go to school early in their lives and work after leaving school. That is what most people do. Use the concepts you learned in chapter 6 to explain why going to school when young is better than working as a kid and going to school as a senior citizen?

Chapter 6 concepts below

. From section 6.1, you should: o Understand what the wage-schooling curve represents. This curve is shown on the first panel of figure 6.2, and it is derived from table 6.1. o Understand what the iso-wealth curves (figure 6.3) represent. You do not need to be able to generate the curves using the formula. The intuition is enough. Review the subsection "Wealth-Maximizing Schooling Choice and the Demand for Schooling." Once you understand what the wage-schooling curve and iso-wealth curves are, you will notice that the schooling choice problem is very similar to other problems we tackled before (e.g., the choice of the optimal combination of leisure and consumption, the firm's choice of the optimal combination of labor and capital, or the choice of the optimal combination of wage and risk across different jobs). . Section 6.2: o Read the subsections "Differences in Ability" and "Avoiding Ability Bias" for a discussion of the source of the bias that arises when we regress earnings on education and interpret the estimate as a measure of the returns to education. . Section 6.3: . Read the section "Signaling Model of Schooling" to learn about an alternative interpretation for why individuals with more years of schooling earn more (that is, schooling does not increase earnings but it is a signal of the student's ability)