Kroencke, Tim Alexander
[VerfasserIn]
;
Mühler, Grit
[Sonstige Person, Familie und Körperschaft];
Sprietsma, Maresa
[Sonstige Person, Familie und Körperschaft]
Erschienen in:ZEW - Centre for European Economic Research Discussion Paper ; No. 13-108
Umfang:
1 Online-Ressource (34 p)
Sprache:
Englisch
DOI:
10.2139/ssrn.2368231
Identifikator:
Entstehung:
Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments December 10, 2013 erstellt
Beschreibung:
Human capital contracts give private investors the right to a share of students' future earnings in return for a fi nancial contribution during their studies. Although still rarely used, human capital contracts could not only help to complement limited public funding for higher education but might also be an alternative to traditional fi nancial assets. Using a dataset covering 1% of German households for the period 1995-2009, we analyse the return and risk properties that can be expected from human capital contracts. We fi nd that funds of human capital contracts provide low risk exposures to stocks and bonds. As a result, risk-adjusted returns of funds of human capital contracts are signifi cantly positive under fairly weak conditions. Thus, human capital contracts potentially off er large diversification benefi ts for investors and might be a way to improve the state's educational budget