According to the Theory on Human Capital, an individual will choose to invest in further schooling if its expected utility is higher than that of entering the labor force if he had a job offer. Therefore, the decision to pursue further schooling will depend on three factors: 1) the probability of finding a job once a higher level of education has been obtained compared to the probability of finding a job while having a lower level of education, or in other words, the difference in unemployment rates for different education levels, 2) the expected salary for workers with different education levels, or in the other words, the difference in mean salaries for different education levels, and 3) the quality and duration of the schooling.