Toward a psychological cost‐benefit model for educational and vocational choice

The usefulness of cost‐benefit models for analyzing the individual's educational and occupational choice is discussed, with the choice after high school graduation as an example. As a background, the economic approach linked to the human capital concept is described as well as the use of cost‐benefit analysis within this framework. Cost‐benefit analysis is then discussed as a possible model within the area of educational and occupational choice. First, the traditional, strictly economic model is analyzed and criticized. A psychological economic alternative is proposed which, in contrast to the economic model, is based on the individual's perceptions and expectations regarding costs and benefits. As a third step, a purely psychological cost‐benefit model is suggested, where the cost and benefit concepts are broadened to include all types of personal sacrifices and rewards. This model is regarded as more realistic for the individual's career choice than the economic prototypes.