The Impact of Human Capital Investment on Selected Displaced

Training and impact on individual earnings of Displaced Workers The economic policy purpose for providing training for displaced workers stems from a calculation that relates future individual earnings to investments in human capital measured in time. Hypothetically, if a displaced worker is provided appropriate training, he or she will be able to find a better earning position than if left untrained. This additional income would, when taxed, refund the cost of training to the taxpayer. The resulting calculation, labeled the "human capital earnings function " (HCEF) is a fundamental tool in researching earnings, wages and income in developed countries. The simple schooling version was first conceived in Becker and Chiswick (1966), which was then extended to include on-the-job training in Mincer (1974). The original purpose for the development of the calculation was to calculate the value of loss earnings due to injury, death or job discrimination. Psacharapoulos and Mattson (1996) extended the model to include estimates of the rate of return from schooling before employment. While the calculation if often used to provide policy impetus to investments in education after employment and after layoff from extended employment, Cheswick (1997) makes th