ABSTRACT
The concern of this chapter and the several which follow is to focus on the labor-supply decisions made by households. 1 These include decisions relating to the “quality” of the labor supply that are the outcome of education and training as well as decisions about labor-force participation and job choice. Because decisions relating to schooling are largely part of the preparatory process of entering the world of work, it seems appropriate to examine investment in human capital prior to investigating labor-force participation.
