Effects of education on earnings the case of ben tre province

UNIVERSITY OF ECONOMICS INSTITUTE OF SOCIAL STUDIES HO CHI MINH CITY THE HAGUE VIETNAM THE NETHERLANDS ************************ VIETNAM- NETHERLANDS PROGRAMME FOR M.A IN DEVELOPMENT ECONOMICS EFFECTS OF EDUCATION ON EARNINGS: THE CASE OF BEN TRE PROVINCE By Mr NGUYEN MINH QUANG A Thesis Submitted in Partial Fulfillment of the Requirements of the Degree of MASTER OF ARTS IN DEVELOPMENT ECQNOMJGS · - _- _ -l F:D CV:: _ - :: :: :,.,;:· I T:llJ.'(i'~Jt'; ~ ,:- \ ~ ~ ~ I ~ ! ' • ,_~, , ; :\' • ' ·: · ! 'IIIt.t Academic Supervisor Dr NGUYEN HOANG BAO HO CHI MINH CITY, 2010 ' ;~-!~·>~ ·:.·~= ·~·r"'_,y~·:r,} l • • '"" - CERTIFICATION I certify that the substance of this dissertation has not already been submitted for any degree and is not being currently submitted for any other degree I certify that to the best of my knowledge any help received in preparing this dissertation, and all sourced used, have been acknowledged in this dissertation NGUYEN MINH QUANG Date: • ACKNOWLEDGEMENT To be able to complete this thesis, I have been received a great support from many people Firstly, I would like to express my appreciation and special thanks to Dr Nguyen Hoang Bao, the author's supervisor, who has been giving me very valuable instruction, advising and comments for the successfulness of my thesis Secondly, I am indebted to all teachers and staffs of the Vietnam- Netherlands Program at the University of Economics Ho Chi Minh city Especially, Assoc Prof Karel Jansen, Assoc Prof Nguyen Trong Hoai for their best supports and valuable comments Thirdly, I would like to express sincere thanks to Dr Nguyen Huu Dung who has provided valuable comments and instructions for completion of this thesis Fourthly, I am grateful to my manager and colleagues for their encouragement and support during my study duration Fifthly, I would like to express my special thanks to all my friends, especially Mr Le Cong Tam, and Mr Tran Nam Quae having given me a lot of valuable opinions and support in the process of my thesis completion Finally, I am indebted to my family and others who gives me great encouragement and support for my study ii - - - - - - • ABSTRACT Education is considered as one of the main factors help people to find the job, break out poverty and improve incomes of individuals and households To understand how the education levels effect on earnings and rates of return to education, Ben Tre province in the Mekong Delta is chosen as a case study in this study Data of 143 workers, aged from 15 to 60 years and having earnings are draw from Vietnam household living standard survey (VHLSS) 2006 The theory of human capital and Mincer earnings functions (1974) are employed in this research Estimation results show that among explanatory variables such as schooling years, education levels, working hours, cultivated land size, gender, and sector have significant effects to earnings One more schooling year helps to increase earnings of workers by 5.63% Person, work in public sector, obtain higher education level and earnings than those works in private sector Similarly, higher education and earnings are found for male workers than those of female workers The fact that increases in working hours has positive effects to earning are a reasonable result Meanwhile, region and experience of workers have no significant effects to earnings From the results of this research, some policies will be suggested to increase individual income through the improvement of individual education factors Rates of return to education are not linearly with education levels Highest rate of return is found for secondary school level Findings from this research confirm the benefit of education on earnings of workers, and rates of returns are not the same for levels of education, which are similar to research results of their studies iii -, - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - CONTENTS Page CERTIFICATION i ACKNOWLEDGEMENTS ii ABSTRACT iii CONTENTS iv ABBREVIATION ix LIST OF TABLES X LIST OF FIGURES xi Chapter 1: Introduction 1.1 Problem statement 1.2 Objectives of the thesis 1.3 Research question and research hypothesis 1.4 Data and methodology 1.5 Organization of the research Chapter 2: Literature review 2.1 Theoretical framework 2.1.1 Key definitions 2.1.1.1 Human capital 2.1.1.2 Rate of return 2.1.2 The link between education and farm productivity 2.1.3 The relationship between education and income iv 1.4 The theory for human capital 10 2.1.4.1 Measuring the cost 13 2.1.4.2 Measuring the benefits of education 13 2.1.4.3 The internal rate ofreturn to schooling 14 2.1.5 Mincerian earnings function methods 17 2.1.6 Other methods 19 2.2 Review of empirical studies 20 2.2.1 Impact of schooling and education levels to earning 20 2.2.2 Gender disparity on rate of return to education 21 2.2.3 Regional disparity on rate of return to education 22 2.2.4 Economic sector of employment disparity 22 2.2.5 Impact of education on earnings Vietnam 23 2.3 Chapter remarks 24 Chapter 3: Methodology and analysis framework 3.1 Model specification 3.2 Definition of variables and measurement 3.2.1 Dependent variable 29 3.2.2 Independent variable 29 3.3 Data set and variable measurement 33 3.4 Steps to estimate parameter in regression model Chapter 4: Empirical analysis and research results and discussions 4.1 Overview of education on earning in Ben Tre province v 4.1.1 Geographic 36 4.1.2 Educational level of workers 37 4.1.3 Human resource of Ben Tre province 4.1.4 Labor force 39 4.1.5 Number of workers 39 4.2 Descriptive analysis and hypothesis 39 4.2.1 Educational status and labor structure in Ben Tre province 40 4.2.2 Others general information of workers 41 4.3 Earnings of workers classified by categories 4.3.1 Earnings classified by education level 41 ·~ 4.3.2 Earnings classified by gender 42 4.3.3 Earnings classified by regions 42 4.3.4 Earnings classified by sectors 42 4.4 Empirical results of effects of education on earnings 4.4.1 Estimation of rate of return with model 43 4.4.2 Estimation of rate of return with model 45 4.5 Chapter remarks 47 Chapter 5: Conclusions and policy recommendations 5.1 Main findings 49 5.2 Policy recommendations 50 5.3 Limitations of the research and further study suggestions 52 REFERENCES 53 vi APPENDICES Appendix 4.1 Geographic of Ben Tre province, period 2004-2006 63 Appendix 4.2 Gini coefficients in the Mekong Delta 63 Appendix 4.3 Region population of Ben Tre province, period 2005-2006 63 Appendix 4.4 Population structure of Ben Tre province, period 2004-2006 64 Appendix 4.5 Population density of Ben Tre province in 2005 in comparison with other provinces of Mekong Delta 64 Appendix 4.6 Working population and employment of Ben Tre province, period 2005-2006 ······································································································· 65 Appendix Frequencies classified by educationallevel 65 Appendix 4.8 Frequencies classified by sectors 65 Appendix 4.9 Meaning of earnings classified by educational level 65 Appendix 4.1 Meaning of earnings classified by gender 66 Appendix 4.11 Meaning of earnings classified by regions 67 Appendix 4.12 Meaning of earnings classified by sectors 67 Appendix 4.13 Estimation results of model 67 Appendix 4.14 Estimation results ofmodel2 68 Appendix 4.15 t-test year schooling and sectors 68 Appendix 4.16 t-test experience and gender 69 Appendix 4.17 t-test year schooling and gender 69 Appendix 4.18 t-test working time and sectors 70 Appendix 4.19 t-test working time and regions 70 vii Appendix 4.20 t-test working time and gender 71 Appendix 4.21 t-test land cultivated size and regions 71 Appendix 4.22 Oneway working time and educational level 72 • viii ABBREVIATION BSO Ben Tre Statistical Office GDP Gross Domestic Product GSO General Statistical Office HCEF Human Capital Earnings Function OLS Ordinary Least-Squared Estimation ROR Rate of return to education VHLSS Vietnam Household Living Standard Survey VND Vietnamese Dong USD United States Dollar ix 80/20/0b/db.pdf, assessed on 20 July 2007 Lucas, R (1988) On the Mechanics of economic Development Journal of Monetary Economics 22f(1), pp 3-42, July http://www.fordham.edu/economics/mcleod/LucasMechanicsEconomicGrowth.pdf, assessed on 20 July 2007 McConnell, C.R and S.L Brue (1995) Contempory Labor Economics, 4th edition New York: Me Graw-Hill, Inc Mellor, J (1976) The New Economics of Growth New York Cornell University Press Mincer, J (1974) Schooling, Experience, and Earnings National Bureau of Economic Research, Columbia University Press http://www.nber.org/books/minc74-1, assessed on 20 July 2007 MOET (Ministry of Education and Training), 2006, "The Education Development Strategic Plan for 2001-2010", http://en.moet.gov.vn/?page=6.1&view=3450, assessed on 10 October 2009 Moock, P R., Patrinos, H A., and Venkataraman, M (1998) Education and Earnings in a Transition Economy- the Case of Vietnam World Bank Working paper no 167 Washington, World Bank http://papers.ssrn.com/sol3/papers.cfm?abstract id=597207, assessed on 20 July 2009 Nguyen D.T and Cheng, E (1999) Productivity Gain from Farmer Education: Fact or Fiction? Productivity and Growth in Chinese Agriculture St Martins's 58 Press, len Norton (1993) Introduction to Economics of Agricultural Development New York: McGraw-Hill, Inc Oxfam Great Britain, Save the Children Alliance, UNICEF (1998) Beyond 20/20: The Vulnerable Family - Challenges for Education A Case Study from Vietnam http://www.sciencedirect.com, assessed on 20 July 2007 Psacharopoulos, G., (1995) The profitability of investment in education: concepts and methods Working papers of Human Capital Development and Operation Policy (HCO) www.uni-oldenburg.de/zef/cde/econ/readings/psacharo.pdf, assessed on 20 July 2007 Psacharopoulos, G., (1994) Returns to Investment in Education: A Global Update World Bank Policy Working Paper no 1067, Washington, World Bank Quoc, Tran Nam (2009) Education on Earnings The case in Mekong Delta, Vietnam MA Thesis Hochiminh city: The University of Economics Quyen, Bui Thai and Cao Nhu Nguyet, Nguyen Thi Kim Dung, Tran Bich Phuong (200 1) Education and Income in Living Standards During an Economics Boom The Case Of Vietnam Dominique Haughton, Jonathan Haughton And Nguyen Phong (Eds) Statistical Publishing House, Hanoi Rosen, S (1987) Human Capital, in J Eatwell and M Milgate (eds) The New Palgrave: A Dictionary of Economics, pp 681-690 London: MacMillan Schultz, T.P., (2003) Evidence of Returns to Schooling in Africa from Household Surveys: Monitoring and Restructuring the Market for Education Center 59 discussion paper no 875, http://www.econ.yale.edu/growth pdf/cdp875.pdf; assessed on 20 July 2007 Schultz, T.W (1993) The economic importance of human capital in modernization Education Economics 1 (1993), pp.l3-19 http://www informaworld.com/smpp/content-content=a73 9133 770&db=all, assessed on 20 July 2007 Schultz, T.W., (1988) Education Investments and Returns In Handbook of Development Economics, Vol Elsevier Science Publishers B.V Schultz, T.W., (1961) Investment in Human Capital American Economic Review Vol 51, pp 1-17 http://lib.sdstate.edu/archives/mss/PDF/MA%2022%20Schultz/Investment%20in%2 0Human%20Capital%20March%20 1961.pdf, , assessed on 20 July 2007 Smith, Adam (1776) The Wealth of the Nations New York Random House, pp 101 Stelcner M., Arriagada A.M and Moock P (1987) Wage Determinants and School Attainment among Men in Peru LSMS working paper No.38 The World Bank, Washington, D.C Stelcner M., VanDer Gaag.J and Vijverberg World Bank (1987) Public- Private Sector Wage Differentials in Peru: 1985-1986 LSMS working paper No.38 The World Bank, Washington, D.C Tam, Bui Thi Kim (2002) How the Impacts of Education on Earnings Has Changed Through Two Surveys VLSS 1992-1993 and VLSS 1997-1998 Vietnam 60 Netherlands Programme For M.A in Development Economics Vijverberg W and Van De Gaag (1995) Wage Determinants in Cote d'Ivoire LSMS working paper No.33 http://wwwwds worldbank.org/external/default/WDSContentServer/WDSP/IB/1999/09/ 17/0 00178830 98101902171140/Rendered/PDF/multi page.pdf, assessed on 20 July 2007 Weir, Sharada (1999) The Effect of Education on Farmer Productivity in Rural Ethiopia Working paper WPS 99-7, March 1999, Oxford University Press http://www csae.ox.ac uk/workingpapers/pdfs/20-04text.pdf, assessed on 01 October 2009 World Bank (2006) World Development Indicators The World Bank World Bank (2002) Potential Benefits of Education, http://www worldbank.org/education/economicsedlresearchlkevread/retumsto,ht m, assessed on 20 July 2007 World Bank (1999) Education Sector Strategy The Human Development Network Washington, D.C http://www.oidel.org/doc/Education/Education%20%20Sector%20Strategy%20 World%20Bank%20.pdf, assessed on 20 July 2007 World Bank (1996) Vietnam: Education Sector Financing Study East Asia and Pacific, Country Department 1, Human resource division http://books.google.com vnlbooks?id=jRSuiH1 tVgEC&pg=P A465&lpg=P A465&d q=World+Bank+( 1996) +Vietnam:+ Education+Sector+Financing+Study +East+ 61 Asia+and+Pacific +Country+ Department+ 1,+ Human+resource+division.&sourc e=bl&ots= 1MObo08YNS&sig=AXM8XgiPKUO jxbSnjrmpujedQ&hl=vi&ei=LolWS9KcA9CGkAXc0cn6BA&sa=X&oi=book result&ct=resul t&resnum=6&ved=OCCEQ6AEwBQ#v=onepage&g=&f=false, assessed on 20 July 2007 World Bank (1980) World Development Report 1980 Washington, D.C.: The World Bank http://www bentre.gov vn/index.php?option=com content&task=category§ioni d=23&id=127&Itemid=154, assessed on 20 July 2007 http://www bentre.gov vn/index.php?option=com content&task=view&id=3 845&It emid=154, assessed on 20 July 2007 http://www.gso.gov.vn/default.aspx?tabid=512&idmid=5&ItemiD=8182, assessed on October 2009 62 APPENDIX Appendix 4.1: The geographic of Ben Tre province Source: http://www.bentre.gov.vn/ Appendix 4.2: Gini coefficients in the Mekong Delta Province Mean schooling years Total labor force Gini Coefficient 1,184,075 5.47 0.30 Baclieu 434,456 5.78 0.29 Bentre 837,219 6.16 0.28 Camau 667,736 5.75 0.27 Cantho 1,110,058 6.12 0.28 Dongthap 922,323 5.89 0.29 Kiengiang 838.986 5.96 0.29 Longan 827,563 6.30 0.27 Soctrang 672,885 5.87 0.28 Travinh 544,618 5.77 0.29 1,024,638 6.41 0.27 Vinhlong 650,138 6.41 0.28 Mekong 8,876,548 5.99 0.28 Vietnam 45,194,762 7.34 0.24 Angiang Tiengiang Source: Adapted from Holsinger (1999) Appendix 4.3: Region population of Ben Tre province period 2005-2006 No Criteria Total po2_ulation Unit (People) 1000 63 2005 2006 2010 1,356.03 1,362.07 1,384.09 Urban population % of total (2/1) Rural population % of total (3/1) Active workforce Agro-forest-fishery Industrial, Constructing and Services Source: BSO (2008) 1000 % 1000 % 1000 1000 226 16% 1,158 84% 713.9 588.7 232.577 17% 1,227 83% 781.721 643.449 261 18% 1,194 82% 748.5 616.7 1000 125.1 131.355 131.8 Appendix 4.4: Population structure of Ben Tre province period 2004-2006 Unit (people) 2004 2005 2006 1000 1,345.64 1,356.03 1,362.07 1,215.11 1,223.92 Urban Population 1000 1000 130.53 132.10 1,227.59 134.47 Agricultural population 1000 1,026.53 1,028.35 1,015.83 Non-agricultural population 1000 319.11 327.62 346.24 90.30% 90.26% 90.13% Urban Population % % 9.70% 9.74% 9.87% Agricultural population % 76.29% 75.84% 74.58% Non-agricultural population % 23.71% 24.16% 25.42% Criteria Total population of the province Rural Population Rural Population Source: BSO (2008) Appendix 4.5: Population density of Ben Tre province in 2005 in comparison ofM ek ong DeIta WI"th ot h er provmces Province/City Ben Tre Natural Area (km 2) Ratio Population Ratio Density (1000 people) 1,351.50 7.8% Inhabitant s/km2 573.00 235.68 5.84% LongAn 449.12 11.30% 1,412.70 8.2% 315.00 Tien Giang 236.66 5.96% 1,700.90 9.9% 719.00 DongThap 324.61 8.17% 1,654.50 9.6% 510.00 Vinh Long 147.52 3.71% 1,055.20 6.1% 715.00 Tra Vinh 221.51 5.57% 1,028.30 6.0% 464.00 Can Tho city 139.00 3.50% 1,135.20 6.6% 817.00 Hau Giang 160.80 4.05% 790.80 4.6% 492.00 An Giang 340.62 8.57% 2,194.00 12.7% 644.00 Kien Giang 626.82 15.77% 1,655.00 9.6% 264.00 Soc Trang 322.33 8.11% 1,272.20 7.4% 395.00 Bac Lieu 252.57 6.36% 797.70 4.6% 316.00 64 520.15 CaMau 3,973.87 Total Mekong Delta 13.09% 1,219.40 100.00% 17,267.40 7.1% 234.00 100.0% 435.00 Source: 2005 Statistic Yearbook, General Department of Stattsttcs Appendix 4.6: Working population and employment ofBenTre province period 2005-2006 No Criteria Unit (People) Total population Total working-age population 1000 % % 1000 % 1000 Skilled workers Social workers Economic workers Agro-forest-fishery sectors Industry, construction sectors Services sector Unemployed 1000 % 1000 % 1000 % 1000 % 2005 2006 2010 1,356.03 905.9 66.8% 38.6% 813.2 89.80% 713.88 52.64% 588.7 82.5% 49.8 7.0% 75.3 10.5% 99.3 12.20% 1,362.07 914.96 67.2% 40.0% 821.33 89.77% 781.70 57.39% 643.45 82.3% 51.24 6.6% 81.85 10.5% 100.64 12.25% 1,384.09 952.1 68.8% 50.0% 854.6 89.80% 748.48 54.08% 616.7 82.4% 53.1 7.1% 78.7 10.5% 106.2 12.40% Source: BSO (2008) Appendix 4.7: Frequencies classified by educational level Education level Valid 1.00 Frequency Percent Valid Percent Cumulative Percent 53 37.1 37.1 37.1 2.00 56 39.2 39.2 76.2 3.00 30 21.0 21.0 97.2 4.00 2.8 2.8 100.0 143 100.0 100.0 Total Appendix 4.8: Frequencies classified by sectors SECTOR Valid I Total Frequency Percent Valid Percent Cumulative Percent 121 84.6 84.6 84.6 22 15.4 15.4 100.0 143 100.0 100.0 65 Growth rates 01-05 06-10 2.39% 1.00% 2.61% 1.00% 0.91% 0.95% 0.92% 0.93% 0.87% 1.29% 0.86% 0.87% 25.05% 1.35% Appendix 4.9: Meaning of earnings classified by educational level EARNING Df Sum of Squares Between Groups 73 8945126.229 Mean Square 246315042.076 31686224.933 Within Groups 4404385265.673 139 Total 5143330391.902 142 Sig F 7.774 000 Post Hoc Tests education level significant Multiple Comparisons Mean Difference (1-J) (I) SCHCODE (J) SCHCODE 1.00 2.00 3.00 -867.0276 -4713.1824(*) 1078.73942 1286.10295 423 000 Lower Bound -2999.8872 -7256.0365 Upper Bound 1265.8319 -2170.3283 4.00 -10002.8491 (*) 2918.80276 001 -15773.8408 -4231.8573 1.00 867.0276 1078.73942 423 -1265.8319 2999.8872 3.00 4.00 1.00 -3846.1548(*) -9135.8214(*) 4713.1824(*) 1273.59057 2913.31112 1286.10295 003 002 000 -6364.2697 -14895.9553 2170.3283 -1328.0399 -3375.6876 7256.0365 2.00 3846.1548(*) 1273.59057 003 1328.0399 6364.2697 4.00 -5289.6667 2996.29166 080 -11213.8678 634.5345 10002.8491(*) 9135.8214(*) 2.00 3.00 5289.6667 • The mean difference is significant at the 05 level Oneway 2918.80276 2913.31112 2996.29166 001 002 080 4231.8573 3375.6876 -634.5345 15773.8408 14895.9553 11213.8678 2.00 3.00 4.00 Std Error 1.00 95% Confidence Interval Sig Descriptives EARNING Mean Std Deviation Std Error 5722.1509 6589.1786 10435.3333 15725.0000 7330.2657 6673.27137 4143.71732 5690.20179 8273.40115 6018.35829 916.64432 553.72752 1038.88396 4136.70058 503.28040 N 1.00 2.00 3.00 4.00 Total 53 56 30 143 95% Confidence Interval for Mean Lower Upper Bound Bound 3882.7695 7561.5323 5479.4838 7698.8733 8310.5771 12560.0896 2560.1725 28889.8275 6335.3755 8325.1560 Minimu m Maximu m 720.00 300.00 1200.00 7900.00 300.00 46325.00 19300.00 26150.00 27200.00 46325.00 Appendix 4.10: Meaning of earnings classified by gender GENDER Levene Test F EARN Equal variances ,483 Significa nee ,488 t df t-test for Equalit Mean Std Sig(2Differe Error tailed) Diff nee ,290 141 ,772 307,535 1058,8 2531 ,297 107,270 ,767 307,535 1034,4 4369 Not Equal variances 66 95% Confidence Interval of the Difference Upper Lower 1785,6 8941 1743,0 6921 2400,7 6080 2358,1 4061 Appendix 4.11: Meaning of earnings classified by regions Levene's Test for Equality of Variances F Sig t t-test for Equality of Means Mean Sig (2- Differen Std Error tailed) Difference ce df 95% Confidence Interval of the Difference Upper Lower EARNING Equal variances assumed Equal variances not assumed 106 2.639 1.138 141 257 2062.83 97 1813.3031 890 12.14 391 2062.83 97 2316.8915 1521.93 636 2978.59 744 5647.61 575 7104.27 683 Appendix 4.12: Meaning of earnings classified by sectors Levene Test EARN SECTOR F Equal variances ,771 Significa nee ,381 t-test for Equalitv t Sig(2tailed) df Std Error Diff 95% Confidence Interval of the Difference Lower Upper 4,499 141 ,000 5889,4 380 1309,0 2250 3301,5 9021 8477,2 8582 4,447 28,877 ,000 5889,4 380 1324,4 2126 3180,1 9274 8598,6 8329 Not Equal variances Mean Differe nee Appendix 4.13: Estimate results of mod ell Modell: regress lnearn yr_schl exp exp_sqr gender region sector ld_size lnwkhr Source df ss MS -+ -Model Residual I I 41.4443031 72.625627 I 114.06993 134 Number of obs F( 8, 134) Prob > F R-squared Adj R-squared Root MSE 5.18053789 541982291 -+ -Total lnearn I Coef 142 803309367 Std Err t P>ltl 143 9.56 0.0000 0.3633 0.3253 73619 [95% Conf Interval] -+ -yr schl exp exp_sqr gender region sector ld size lnwkhr cons 0563826 0216323 -.0004374 2313729 -.0361665 7266106 -.0490072 5462615 5.343804 0233459 0171918 0003172 1301154 2277134 2107235 0191946 1166431 6780295 2.42 1.26 -1.38 1.78 -0.16 3.45 -2.55 4.68 7.88 67 0.017 0.210 0.170 0.078 0.874 0.001 0.012 0.000 0.000 0102085 -.0123701 -.0010647 -.0259727 -.4865439 3098362 -.0869708 3155619 4.00278 1025567 0556347 00019 4887184 4142109 1.143385 - 0110435 7769612 6.684828 Breusch-Pagan I Cook-Weisberg test for heteroskedasticity Ho: Constant variance Variables: fitted values of lneam chi2(1) 0.35 Prob > chi2 = 0.5553 Appendix 4.14: Estimate results of model Model 2: regress lnearn level_2 level_3 level_4 exp exp_sqr gender region sector ld size lnwkhr Std Error of the Estimate 687180041379 649(a) 421 377 615 a Predictors: (Constant), LNWKHR, LEVEL_2, GENDER, EXP, SECTOR, LD_SIZE, REGION, LEVEL_4, LEVEL_3, EXP_SQR ANOVA b) Model R I Model Adjusted R Square R Square Sum of Squares df Mean Square Regression 45.299 10 4.530 Residual 62.333 132 472 l 07.631 142 Total Sig F 9.593 OOO(a) a Predictors: (Constant), LNWKHR, LEVEL_2, GENDER, EXP, SECTOR, LD_SIZE, REGION, LEVEL_4, LEVEL 3, EXP_SQR b Dependent Variable: LNEARN Breusch-Pagan I Cook-Weisberg test for heteroskedasticity Ho: Constant variance Variables: fitted values of lneam chi2(1) 0.32 Prob > chi2 = 0.5720 Appendix 4.15: T-Test year schooling and sectors I YR_SCHL N SECTOR I Mean Std Error Mean Std Deviation 22 11.41 3.081 657 121 6.03 3.112 283 Independent Samples Test Levene's Test for Equality of Variances F Sig t df t-test for Equality of Means Std Mean Error Sig (2Differe Differe tailed) nee nee 95% Confidence Interval ofthe Difference Lower I Upper 68 Equal variances assumed Equal variances not assumed YR SCHL 264 608 7.465 141 000 5.38 720 3.952 6.800 7.517 29.336 000 5.38 715 3.914 6.838 Appendix 4.16: T-test experience and gender T-Test expenence an d en d er I~ENDE EXP I Mean N Std Error Mean Std Deviation 50 23.28 12.352 1.747 I 93 22.02 11.581 1.201 I n d tOP_en d en t samj11es I T est Levene's Test for Equality of Variances F EXP Equal variances assumed Sig 1.228 t 270 Equal variances not assumed df t-test for Equality of Means Std Mean Error Sig (2Differe Differe tailed) nee nee 95% Confidence Interval of the Difference Lower Upper 605 141 546 1.26 2.079 -2.851 5.368 594 94.960 554 1.26 2.120 -2.950 5.467 Appendix 4.17: T-Test year schooling and gender G ro up Sta f ISf ICS YR SCHL I N GENDER Mean Std Error Mean Std Deviation 50 7.16 4.363 617 93 6.70 3.230 335 I n d epen d en tS amJ11eS I T es t Levene's Test for Equality of Variances F YR SCHL Equal variances assumed Equal variances not assumed 6.916 Sig .009 t df t-test for Equality of Means Std Mean Error Sig (2Differe Differe tailed) nee nee 95% Confidence Interval ofthe Difference Lower Upper 718 141 474 46 642 -.809 1.731 657 78.494 513 46 702 -.936 1.859 69 • Appendix 4.18: T-Test working time and sectors Group Statistics WORK TIME I Mean N SECTOR I Std Deviation Std Error Mean 22 129.8182 51.11671 10.89812 121 152.4711 71.01257 6.45569 In depen d ent samp1es I T est Levene's Test for Equality of Variances F f Sig t-test for Equality of Means Std Mean Error Sig (2Differe Differe tailed) nee nee df t 95% Confidence Interval of the Difference Lower WORKTIME Equal variances assumed Equal variances not assumed 1.219 271 -1.429 141 155 -I 788 37.515 082 22.6529 - 22.6529 15.8572 12.6666 - 54.001 61 48.306 14 Upper 8.6958 3.0003 Appendix 4.19: T-Test working time and regions WORKTIME I N REGION Mean Std Deviation Std Error Mean 12 164.8333 75.18926 21.70527 131 147.5344 68.16725 5.95580 I n d epen dent samples I T est Levene's Test for Equality of Variances • F - -~ Sig t df t-test for E_guality of Means Std Mean Error Sig (2Differe Differe tailed) nee nee 95% Confidence Interval of the Difference Lower WORKTIME Equal variances assumed Equal variances not assumed 134 715 834 141 405 17.299 20.732 74 769 12.713 456 17.299 22.507 56 } 70 23.688 23 - 31.437 59 Upper 58.286 20 66.035 56 • Appendix 4.20: T-Test working time and gender I N GENDER WORK TIME I Std Error Mean Std Deviation Mean 50 152.4600 74.10726 10.48035 93 147.1183 65.89911 6.83342 I T est I n d epen d ent samp1es Levene's Test for Equality of Variances F Sig t-test for Equality of Means Std Mean Error Sig (2Differe Differe nee nee tailedl df t 95% Confidence Interval of the Difference ' Lower ' WORKTIME Equal variances assumed Equal variances not assumed 421 518 442 141 659 5.3417 427 90.780 670 5.3417 - 12.0760 18.531 81 - 12.5113 19.511 31 Upper 29.215 25 30.194 75 Appendix 4.21: T-Test land cultivated size and regions LD_SIZE I REGION I N Mean Std Deviation 12 3.18333 4.253092 131 3.96586 3.330919 Std Error Mean 1.227762 291024 I n depen d en t samp1es I Test Levene's Test for Equality of Variances If F I Sig t df t-test for Equality of Means Std Mean Error Sig (2- Differe Differen taileof the Difference - Lower LD_SIZE Equal variance s assumed Equal variance s not assumed 000 992 -.760 141 448 -.620 12.26 546 71 78253 78253 1.02903 1.26178 Upper 2.81686 I 3.52508 I 1.25180 1.96002 • Appendix 4.22: Oneway working time and educational level WORKTIME N Mean Std Deviation Std Error 95% Confidence Interval for Mean Lower Upper Bound Bound Minimu m 1.00 53 145.1132 64.12598 8.80838 127.4379 162.7885 35.00 280.00 2.00 56 149.3929 74.01564 9.89076 129.5713 169.2144 40.00 392.00 3.00 30 157.3333 70.44359 12.86118 131.0293 183.6374 64.00 360.00 4.00 132.0000 46.41839 23.20919 58.1380 205.8620 88.00 176.00 143 148.9860 68.66729 5.74225 137.6347 160.3374 35.00 392.00 Total ANOVA WORKTIME Sum of Squares Between Groups • Maximu m df Mean Square 4048.628 1349.543 Within Groups 665509.351 139 4787.837 Total 669557.979 142 • '- 72 F Sig .282 838 ... education on earnings in Ben Tre province 1.2 OBJECTIVES OF THE THESIS The purpose of this study is to analyze the effects of education on earnings of workers, and to examine the rates of return... studies on the effect of education on earnings The chapter begins with some key definitions that are frequently used in theories Then, the second section presents relevant theories on the links of education. .. level of education In the case of university education, the control group comprises of individuals of secondary education From data in age -earnings profile, it is possible to calculate rate of return