The Human Capital theory, as ordinarily defined, is a "content" theory of the economic value of a higher education to its recipient or his employer. But non-vocational higher education offers by definition no such content. So why does it yield a higher income? Various theories are examined:
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The degree is an external test, vastly expensive to society but very cheap to individual employers;
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The degree course forms character, and that is a kind of human capital;
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The degree course exercises the mind, and develops it like a muscle; 4) The degree confers social status; 5) Insistence on a degree, including now vocational degrees, is a restrictive practice by many trade unions.
People also seek non-vocational higher education because it is publicly financed. There is a "Robbinsian" supply curve of higher education facilities. This is profoundly irrational, but all parties react rationally to it. No evidence connecting degree certificates with income could distinguish between Human Capital and most of these other theories. Possible statistical tests are discussed.
Whatever be the languages -whatever be the sciences, which it is, in any age or country, the fashion to teach, those who become the greatest proficients in those languages, and those sciences, will generally be the flower of youth -the most acute -the most industrious -the most ambitious of honourable distinctions. If the Ptolemaic system were taught at Cambridge, instead of the Newtonian, the senior wrangler would nevertheless be in general a superior man to the wooden spoon. If instead of learning Greek, we learned the Cherokee, the man who understood the Cherokee best, who made the most correct and melodious Cherokee verses -who comprehended most accurately the effect of the Cherokee particles would generally be a superior man to him who was destitute of these accomplishments. If astrology were taught at our Universities, the young man who cast nativities best would generally turn out a superior man. If alchemy were taught, the young man who showed most activity in the pursuit of the philosopher's stone, would generally turn out a superior man (