Returns to education a case study in the mekong delta vietnam

THE UNIVERSITY OF ECONOMICS HO CHI MINH CITY VIETNAM INSTITUTE OF SOCIAL STUDY THE HAGUE THENETHERLANDS THE VIETNAM-NETHERLANDS PROJECT FOR MA PROGRAM IN DEVELOPMENT ECONOMICS RETURNS TO EDUCATION A CASE STUDY IN THE MEKONG DELTA - VIETNAM By TRAN NAM QUOC IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTER 0F ARTS IN DEVELOPMENT ECONOMICS SUPERVISOR: Prof NGUYEN TRONG HOAI HO CHI MINH CITY, DECEMBER 2009 RETURNS TO EDUCATION: A CASE STUDY IN THE MEKONG DELTA- VIETNAM By TRAN NAM QUOC SUPERVISOR: Prof NGUYEN TRONG HOAI HO CHI MINH CITY, DECEMBER 2009 CERTIFICATION I certify that the substance of this study 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 receiving in preparing this thesis, and all sources used, have been acknowledged in this thesis Ho Chi Minh City, December 2009 TRAN NAM QUOC ACKNOWLEDGEMENTS The thesis, titled "Returns to Education: A case study in the Mekong Delta- Vietnam", is a fulfilled research of Vietnam Netherlands Program (VNP) This thesis is the quantitative analysis mainly based on data from the VHLSS 2004 and VHLSS 2006 which surveyed by General Statistical Office (GSO) In order to have an accomplishment of this research, the author had received a lot of precious supports from professors and office staffs ofVNP Firstly, the author would like to express special thanks to Prof Nguyen Trong Hoai, the author's supervisor, who advised many scientific instructions in during process to conduct the thesis Particularly, thanks to these worthy instructions and kindly help from Professor, the author completed the research and released scientifically convincible results I would like to thank Prof Karel Jansen, for worthy comments on Thesis Research Design (TRD) formation of this thesis I would like to express sincere thanks to Dr Nguyen Huu Dung who has provided valuable comments for completion of this thesis I would like to thank sincerely Mr Truong Thanh Vu, the visiting lecturer of VNP, for valuable comments and instructions in filtering the appropriate data set I am indebted to all teachers and staffs of the Vietnam - Netherlands Program at University of Economics HCM Finally, I am indebted to my family and others who gtve me great encouragement and support for my study 11 ABSTRACT The purpose of this research is to examine the return to education in Mekong Delta The author has applied descriptive statistics, econometric model to examine return to education classified by return to schooling (RTS) and rate of return to education (RORE) within each different level of education The return to education is also investigated separately for each of controlling variables in sub-groups The data sources are selected from VHLSS 2004 and VHLSS 2006 ofGSO This study found out meaningful findings Firstly, on average, RTS is increased overtime Thus, it increased from 3.46 percent in 2004 to 4.13 percent in 2006 RTS is higher for female than for male and higher for persons living in urban than those living in rural, at 7.45 percent and 3.26 percent, respectively It is also higher for individuals working in service sector and industry-construction compared to whose working in agriculture-forestry sector Secondly, RORE at high - school level is highest, at 11.49 percent" in 2004 and 11.89 percent in 2006 In addition, RORE of workers working in public sector is higher compared to private sector at all below education levels; however, RORE of individuals with university and working in private sector is 14.19 percent, higher than those in public sector (8.29 percent) Finally, in particular, RORE of workers with university and working in industry- construction sector obtained highest rate, at 24.81 percent in 2006 This study also argued mainly significant policy implications Firstly, the policies attracting high educated labor force to work in rural areas are worth to be considered Secondly, the process of rural urbanization should be strengthened more quickly to develop private sector and create more employment in rural areas Thirdly, high school, college and university education should be prioritized and more improved to increase more high-skilled labor force serving for economic development strategy in this region Favorable conditions and subsidies to make more opportunities for women increasing enrollment should be more considered Finally, advocacy programs should be strengthened for all organizations, families and individuals to change their perceptions and share roles and responsibilities for education and human development 111 CONTENTS Certification i Acknowledgements ii Abstract iii Content table iv List of Tables viii List of Figures ix List of Abbreviations x CHAPTER 1: INTRODUCTION 1.1 Introduction ! 1.2 Research objectives 1.3 Research hypotheses 1.4 Research methodology 1.5 Data 1.6 Thesis structure CHAPTER 2: LITERATURE REVIEW 2.1 Theoretical background 2.1.1 Economics of education 2.1.2 Human capital theory - 2.1.3 Education and economic development 10 2.2 Theoretical methods and conceptual models 12 2.2.1 Theoretical methods 12 2.2.1.1 Cost Benefit Analysis methods 12 2.2.1.2 The Short-cut method 13 IV 2.2.1.3 The Reverse Cost- Benefit method 13 2.2.1.4 The Earning function methods 14 2.2.2 Conceptual models 14 2.2.2.1 Utility function 14 2.2.2.2 Mincerian model ; · 15 2.2.2.3 Other conceptual models 16 2.3 Empirical approaches with determinants of rate of return to education 17 2.3 Empirical models 18 2.3 Empirical evidences 21 2.3.2.1 Schooling year and education level 21 2.3.2.2 Experience 24 2.3.2.3 Gender 24 2.3 2.4 Household characteristics 27 2.3.2.5 Private and public sector 27 2.3 2.6 Rural and urban area 28 2.3.2.7 Agricultural and Non- Agricultural sector 29 2.3.2.8 Ethnic group 29 2.4 Chapter summary : 30 CHAPTER 3: RESEARCH METHODOLOGY 31 Key concepts 31 Model specification 31 v 3.3 Identification bias ability of missing an innate variable 35 3.4 Data set and variable measurement 36 3.5 Steps to estimate parameters in regression models 38 3.6 Chapter summary 39 CHAPTER 4: RESEARCH CONTEXT: THE MEKONG DELTA OVERVIEW 40 4.1 Geographic 40 4.2 Demographics 41 4.3 Education and Earning in Mekong Delta 41 4.3.1 Enrolment in general education 42 4.3.2 The important role of primary 42 4.3.3 Vocational and tertiary education 43 4.4 Regional and Sector 44 4.5 Human resource development of the region 45 4.6 Distribution of education attainment as a policy tools 46 CHAPTER 5: EDUCATION AND RETURNS TO EDUCATION IN THE MEKONG DELTA 47 5.1 Education - human capital and earnings of workers in the Mekong Delta 1.1 Education and human capital 1.1.1 Educational level structure 1.1.2 Labor structure classified by sectors 48 1.1.3 Schooling year classified by gender and region characteristics 49 1.1.4 Schooling year classified by sectors 50 1.2 Earnings of workers 51 5.1.2.1 Per capita income classified by gender and regions 51 Vl 5.1.2.2 Per capital income classified by sectors 52 5.1.2.3 Per capita income classified by education levels 53 5.2 Empirical findings 54 5.2.1 Examine the effect of parental education on RTS of workers 54 5.2.2 Estimation ofRTS in 2004 and 2006, Modell 55 5.2.3 Estimation ofRTS in 2004 and 2006 associated with Sub-group variables, Modell 56 5.2.4 Estimation ofRORE within each education level in 2004 and 2006, Model2 57 5.2.5 Calculation RORE within each education level for sub- group variables in 2006, Model 59 5.3 Charter remarks 61 CHAPTER 6: CONCLUSION AND POLICY IMPLICATION 63 6.1 Conclusion ~ 63 6.2 Policy implications 65 6.2.1 Economic policy 65 6.2.2 Education policy 66 LIMITATION OF THE RESEARCH 67 SUGGESSION FOR FURTHER RESEARCH 67 REFERENCES APPENDICES Vll LIST OF TABLES Table 2.1: Return to education in the world ; 22 Table 3.1: Definitions and notations of model variables 33 Table 4.1: Gini coefficients in the Mekong Delta····································'·················· 46 Table 5.1: Mean of schooling year classified by gender and region characteristics 49 Table 5.2: Mean of schooling year classified by sectors 50 Table 5.3: RTS for workers having parental education (2006) 54 Table 5.4: Estimation results of Modell ~ 55 Table 5.5: RTS associated with Sub-group variables, Modell 56 Table 5.6: Estimation results ofModel2 58 Table 5.7: RORE for each education level 58 Table 5.8: Estimation results for sub- group variables, Model2 59 Table 5.9: RORE within each education level 60 vm 5.2 Appendix of empirical statistics 2004 - 2006 5.2.1 Return to schooling for individuals having information of parental education (estimated by OLS method) in 2006, regardless the impact of parental education reg lnEARN SCHOOL EXP EXPSQR REGION GEN STATE INDU CON SERVICE ETHINIC if infoeduparent==1, robust Linear regression lnEARN I Number of obs F( 9, 1099) Prob > F R-squared Root MSE Coef Robust Std Err t P>ltl 1109 120.06 0.0000 0.4479 70599 [95% Conf Interval] -+ SCHOOL EXP EXPSQR REGION GEN STATE INDU CON SERVICE Constant (C) 0319358 0381982 -.000835 1380166 2686707 4169926 859963 7242963 7.392727 0079084 0067552 0001357 058125 0458058 0980677 0562898 0832619 0935835 4.04 5.65 -6.15 2.37 5.87 4.25 15.28 8.70 79.00 0.000 0.000 0.000 0.018 0.000 0.000 0.000 0.000 0.000 0164185 0249436 -.0011014 0239681 1787941 2245715 7495153 560926 7.209105 0474532 0514527 -.0005687 2520651 3585474 6094138 9704106 8876665 7.57635 5.2.2 Return to schooling for individuals having information of parental education (by IV method, estimated by 2SLS) in 2006, mentioning the impact of parental education ivreg lnEARN (SCHOOL= hhSCHOOL2) EXP EXPSQR REGION GEN STATE INDU CON SERVICE ETHINIC if infoeduparent==1, robust first First-stage regressions Source I ss df MS -+ -Model I Residual I 15169.7572 4511.97769 1099 1685.52858 4.1055302 Total I 19681.7349 1108 17.7632986 Number of obs F( 9, 1099) Prob > F R-squared Adj R-squared Root MSE -+ -SCHOOL I Coef Std Err t P>ltl 1109 410.55 0.0000 0.7708 0.7689 02 62 [95% Conf Interval] -+ EXP I -.1971353 EXPSQR I 0024959 REGIONI 374575 GEN I 6007583 STATE I 2.095699 INDU CON I 6167976 SERVICE I 3904823 HHSCHOOL2 I 6650031 Constant (C) I 4.137448 0181228 0003732 1709672 1282296 2466836 1619119 2076759 0200184 2368206 -10.88 6.69 2.19 69 8.50 81 1.88 33.22 17.47 0.000 0.000 0.029 000 0.000 000 0.060 000 0.000 Instrumental variables (2SLS) regression lnEARN I Coef Robust Std Err -.2326945 0017637 0391159 ·3491559 1.611675 2991062 -.0170038 6257245 3.672776 Number of obs F( 9, 1099) Prob > F R-squared Root MSE t P>ltl -.161576 0032281 710034 8523608 2.579723 9344889 7979685 7042816 4.602119 1109 118.10 0.0000 0.4478 70607 [95% Conf Interval] -+ SCHOOL EXP EXPSQR REGION GEN STATE INDU CON SERVICE ETHINIC Constant (C) I I I I I I I I I I Instrumented: Instruments: 0284289 0378183 -.0008347 1415031 2712391 4362029 8632916 7292181 1481082 7.416426 0107549 0068443 0001357 0589059 0464381 1038786 0567762 0846154 0700597 1075766 2.64 5.53 -6.15 2.40 5.84 4.20 15.21 8.62 2.11 68.94 0.008 0.000 0.000 0.016 0.000 0.000 0.000 0.000 0.035 0.000 0073265 0243889 -.0011011 0259224 1801218 23238 7518895 5631921 0106424 7.205348 0495313 0512478 -.0005684 2570838 3623565 6400258 9746937 895244 285574 7.627505 SCHOOL EXP EXPSQR REGION GEN STATE INDU _CON SERVICE ETHINIC b4SC,HQOJ;.2 5.2.3 Return to schooling in 2004 reg lnEARN SCHOOL EXP EXPSQR REGION GEN STATE INDU_CON SERVICE , robust Number of obs F( 8, 1924) Prob > F R-squared Root MSE Linear regression lnEARN I Coef Robust Std Err t 1933 213,31 0.0000 0.4216 73111 P>ltl [95% Conf Interval] 0.000 0.000 0.000 0.009 0.000 0.000 0.000 0.000 0.000 0235179 0288237 -.001084 0301677 1889518 2870426 7856518 5911015 6.977963 -+ SCHOOL EXP EXPSQR REGION GEN STATE INDU CON SERVICE Constant (C) 0346117 0397837 -.0008413 1181384 2575968 4162656 8721382 7029527 7.113318 0056567 0055884 0001238 0448556 0350016 0658898 0440987 0570321 0690161 6.12 7.12 -6.80 2.63 7.36 6.32 19.78 12.33 103.07 0457056 0507437 -.0005986 2061091 3262418 5454886 9586245 8148039 7.248672 5.2.4 Return to schooling in 2006 reg lnEARN SCHOOL EXP EXPSQR REGION GEN STATE INDU_CON SERVICE , robust Linear regression lnEARN I Number of obs F( 8, 1924) Prob > F R-squared Root MSE Coef Robust Std Err t P>ltl 1933 211.53 0.0000 0.4296 70728 [95% Conf Interval] -+ SCHOOL EXP EXPSQR REGION GEN STATE INDU_CON I SERVICE I Constant(C) I 0412552 0055936 7.38 0.000 0432131 0051963 8.32 0.000 -.0009075 0001084 -8.37 0.000 1067878 0439856 2.43 0.015 2323962 0338 6.88 0.000 3714319 0667992 5.56 0.000 8793202 0404766 21.72 000 737884 054583 13.52 0.000 7.324114 0694413 105.47 0.000 0302851 033022 -.0011201 0205234 1661077 2404254 7999377 6308358 7.187926 0522253 0534041 -.000695 1930522 2986846 5024384 9587028 8449321 7.460302 5.2.5 Return to schooling of individuals in urban in 2004 reg lnEARN SCHOOL EXP EXPSQR GEN STATE INDU CON SERVICE if REGION==!, robust Linear regression lnEARN I Number of obs F( 7, 396) Prob > F R-squared Root MSE Coef Robust Std Err t 404 39.76 0.0000 0.3885 70445 [95% Conf Interval] P>ltl -+ ~ - SCHOOL EXP EXPSQR GEN STATE INDU CON SERVICE Constant (C) 0448976 0653185 -.0013573 1655621 3361958 6996918 6983157 7.045023 0110587 0131293 0002838 0729552 1102972 1332928 1399385 1868928 4.06 98 -4.78 2.27 3.05 5.25 4.99 37.70 0.000 0.000 0.000 0.024 0.002 0.000 0.000 0.000 0231565 0395066 -.0019152 0221342 1193544 4376418 4232005 6.677597 0666387 0911304 -.0007995 3089899 5530371 9617417 9734309 7.412449 5.2.6 Return to schooling of individuals in rural in 2004 reg lnEARN SCHOOL EXP EXPSQR GEN STATE INDU CON SERVICE if REGION==O, robust Linear regression lnEARN I Number of obs F( 7, 1521) Prob > F R-squared Root MSE Coef Robust Std Err t 1529 152.27 0.0000 0.3666 73558 [95% Conf Interval] P>ltl -+ SCHOOL EXP EXPSQR GEN STATE INDU CON SERVICE Constant (C) 0280976 0327961 -.0007107 2832897 4593632 9254687 6634385 7.194757 0065763 0061749 0001374 039719 0854165 0480093 0698049 0769902 4.27 5.31 -5.17 7.13 5.38 19.28 9.50 93.45 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0151981 0206838 -.0009803 2053799 2918167 8312972 5265145 7.043739 0409972 0449084 -.0004411 3611995 6269098 1.01964 8003625 7.345776 5.2.7 Return to schooling of individuals in urban in 2006 reg lnEARN SCHOOL EXP EXPSQR GEN STATE INDU CON SERVICE ETHINIC if REGION==!, robust Linear regression Number of obs F( 8, 421) Prob > F R-squared Root MSE lnEARN I Coef I I I I I I I 0797234 0486742 -.0009337 2416377 2130992 7513826 7644335 Robust Std Err t P>ltl 430 38.84 0.0000 0.4102 70769 [95% Conf Interval] -+ -SCHOOL EXP EXPSQR GEN STATE INDU CON SERVICE 0101963 0117457 0002488 071026 107076 1308186 1350608 7.82 4.14 -3.75 3.40 99 5.74 5.66 0.000 0.000 0.000 0.001 04 0.000 0.000 0596814 .0255867 -.0014229 1020278 0026291 4942437 498956 0997655 0717618 -.0004446 3812475 4235693 1.008522 1.029911 ETHINIC I Constant (C) I -.3599767 7.098777 2102886 1925958 -1.71 36.86 0.088 0.000 -.7733232 720207 0533698 7.477346 5.2.8 Return to schooling of individuals in rural in 2006 reg lnEARN SCHOOL EXP EXPSQR GEN STATE INDU CON SERVICE if REGION==O, robust Linear regression lnEARN I Number of obs F( 7, 1495) Prob > F R-squared Root MSE Coef Robust Std Err t P>ltl 1503 173.29 0.0000 0.3986 69931 [95% Conf Interval) -+ -SCHOOL EXP EXPSQR GEN STATE INDU CON SERVICE Constant (C) 0248931 0394288 -.0008756 2429972 4513445 9321123 6854762 7.461815 006564 0057254 0001192 0380392 0862772 042807 0644554 0765018 3.79 6.89 -7.34 6.39 5.23 21.77 10.63 97.54 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0120175 0281981 -.0011094 1683814 2821073 8481442 5590435 7.311753 0377687 0506595 -.0006417 317613 6205817 1.01608 8119089 7.611877 5.2.9 Return to schooling of male in 2004 reg lnEARN SCHOOL EXP EXPSQR REGION STATE INDU CON SERVICE if GEN ==1, robust Linear regression lnEARN I Number of obs F( 7, 1186) Prob > F R-squared Root MSE Coef Robust Std Err t P>ltl 1194 107.36 0.0000 0.3587 7302 [95% Conf Interval) -+ -SCHOOL EXP EXPSQR REGION STATE INDU CON SERVICE Constant (C) 0266378 0459861 -.0009605 1264141 3797256 8585064 6268349 7.390751 0072774 0073374 0001656 0566407 0947862 0511019 0805298 0875034 3.66 6.27 -5.80 2.23 4.01 16.80 7.78 84.46 0.000 0.000 0.000 0.026 0.000 0.000 0.000 0.000 0123599 0315903 -.0012854 0152869 1937582 7582462 4688381 7.219072 0409158 0603819 -.0006356 2375413 565693 9587666 7848317 7.562429 5.2.10 Return to schooling of female in 2004 reg lnEARN SCHOOL EXP EXPSQR STATE INDU CON SERVICE if GEN ==0, robust Linear regression Number of obs F( 6, 732) Prob > F R-squared Root MSE lnEARN I Coef I I I I 0463013 0314928 -.0006592 5150605 Robust Std Err t P>ltl 739 194.56 0.0000 0.4869 72294 [95% Conf Interval) -+ -SCHOOL EXP EXPSQR STATE 0089685 0085563 0001848 0884954 5.16 3.68 -3.57 5.82 0.000 0.000 0.000 0.000 0286943 0146949 -.0010221 3413254 0639083 0482908 -.0002963 6887956 .8881737 8337743 7.077004 INDU CON SERVICE Constant (C) 0816924 0808933 1061473 10.87 10.31 66.67 0.000 0.000 0.000 7277943 6749638 6.868615 1.048553 9925848 7.285394 5.2.11 Return to schooling of male in 2006 reg lnEARN SCHOOL EXP EXPSQR REGION STATE INDU CON SERVICE if GEN ==1, robust Linear regression Number of obs F( 7, 1148) Prob > F R-squared Root MSE Coef lnEARN I Robust Std Err t P>ltl 1156 107.62 0.0000 0.3815 69396 [95% Conf Interval] -+ SCHOOL EXP EXPSQR REGION STATE INDU CON SERVICE Constant (C) 0325398 0467759 -.0009662 1371011 2895212 8390359 7114375 7.60056 0069096 0067607 0001442 0562404 0889859 047927 0773442 0860084 4.71 6.92 -6.70 2.44 3.25 17.51 9.20 88.37 0.000 0.000 0.000 0.015 0.001 0.000 0.000 0.000 0189829 0335112 -.0012491 0267555 1149281 7450015 5596857 7.431809 0460967 0600405 -.0006832 2474467 4641144 9330702 8631893 7.769311 5.2.12 Return to schooJ ing of female in 2006 reg lnEARN SCHOOL EXP EXPSQR STATE INDU CON SERVICE if GEN ==0, robust Linear regression Number of obs F( 6, 770) Prob > F R-squared Root MSE Coef lnEARN I Robust Std Err t P>ltl 777 181.40 0.0000 4722 71996 [95% Conf Interval] -+ -SCHOOL EXP EXPSQR STATE INDU CON SERVICE Constant (C) 0510848 0409884 -.0008487 4956464 9550539 8025495 7.241498 0092854 0080986 0001642 0999456 0733095 0714451 1103664 5.50 5.06 -5.17 4.96 13.03 11.23 65.61 0.000 0.000 0.000 0.000 0.000 0.000 0.000 032857 0250906 -.0011711 2994482 8111437 6622992 7.024843 0693125 0568863 -.0005263 6918445 1.098964 9427997 7.458153 5.2.13 Return to schooling of individuals working in public sector in 2004 reg lnEARN SCHOOL EXP EXPSQR INDU CON SERVICE if STATE ==1, robust Linear regression I lnEARN I Number of obs F( 5, 313) Prob > F R-squared Root MSE Coef Robust Std Err t P>ltl 319 38.56 0.0000 0.3793 4891 [95% Conf Interval] -+ -SCHOOL EXP EXPSQR INDU CON 1148621 0546868 -.001128 -.4486469 010478 0099137 0002562 2058407 10.96 5.52 -4.40 -2.18 0.000 0.000 0.000 0.030 0942458 0351808 -.001632 -.8536533 1354784 0741927 -.000624 -.0436405 SERVICE I Constant (C) I -1.008737 8.251978 1986063 2212805 -5.08 37.29 0.000 0.000 -1.399509 7.816592 -.6179647 8.687363 5.2.14 Return to schooling of individuals working in private sector in 2004 reg 1nEARN SCHOOL EXP EXPSQR GEN INDU CON SERVICE if STATE ==0, robust Linear regression lnEARN I Number of obs F( (5, 1607) Prob > F R-squared Root MSE Coef Robust Std Err t P>ltl 1614 135.80 0.0000 0.3144 75473 [95% Conf Interval) -+ SCHOOL EXP EXPSQR GEN INDU CON SERVICE Constant (C) 0231912 0370236 -.0007775 3307317 9199664 8247355 7.137104 0066591 006303 0001357 0404714 0454789 0597847 080273 3.48 5.87 -5.73 8.17 20.23 13.80 88.91 0.001 0.000 0.000 0,000 0.000 0.000 0.000 0101297 0246607 -.0010436 2513494 8307623 7074713 6.979653 0362526 0493865 -.0005114 410114 1.00917 9419998 7.294554 5.2.15 Return to schooling of individuals working in public sector in 2006 reg lnEARN SCHOOL EXP EXPSQR REGION SERVICE if STATE==1, robust Linear regression lnEARN I Number of obs F( 5, 282) Prob > F R-squared Root MSE Coef Robust Std Err t P>ltl 288 25.53 0.0000 0.3355 56506 [95% Conf Interval) -+ -SCHOOL EXP EXPSQR REGION SERVICE Constant (C) I I I I I I 108889 057547 -.0011172 224088 -.5244777 8.000111 0118886 0145503 0003338 0705994 1596686 2158926 9.16 3.96 -3.35 3.17 -3.28 37.06 0.000 0.000 0.001 0.002 0.001 0.000 0854874 0289059 -.0017743 0851192 -.8387712 7.575146 1322906 086188 -.0004602 3630567 -.2101841 8.425077 5.2.16 Return to schooling of individuals working in private sector in 2006 reg lnEARN SCHOOL EXP EXPSQR GEN INDU CON SERVICE if Linear regression lnEARN I STATE==O, robust Number of obs F( 6, 1638) Prob > F R-squared Root MSE Coef Robust Std Err t P>ltl 1645 158.33 0.0000 0.3413 71909 [95% Conf Interval) -+ SCHOOL EXP EXPSQR GEN INDU CON SERVICE Constant (C) 0304371 038145 -.0008121 2950329 9151357 817852 7.39061 0061691 0056083 0001152 0378557 0405756 0526829 0762906 4.93 6.80 -7.05 7.79 22.55 15.52 96.87 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0183368 0271449 -.0010381 2207821 8355502 714519 7.240972 0425373 0491451 -.0005861 3692836 9947212 921185 7.540247 5.2.17 Return to schooling of individuals working in industry and construction sector in 2004 reg lnEARN SCHOOL EXP EXPSQR REGION GEN STATE if INDU_CON ==1, robust Linear regression I lnEARN I Number of obs F( 6, 431) Prob > F R-squared Root MSE Coef Robust Std Err t P>ltl 438 21.70 0.0000 0.1948 65423 [95% Conf Interval] -+ -SCHOOL EXP EXPSQR REGION GEN STATE Constant (C) 0643558 0512822 -.0009909 -.1229816 2938455 5203786 7.683956 0093001 0106051 0002469 0732585 0775182 0943266 1280271 6.92 4.84 -4.01 -1.68 3.79 5.52 60.02 0.000 0.000 0.000 0.094 0.000 0.000 0.000 0460767 030438 -.0014761 -.2669701 1414847 3349813 7.432321 082635 0721264 -.0005057 0210068 4462062 7057758 7.935591 5.2.18 Return to schooling of individuals working in service sector in 2004 reg lnEARN SCHOOL EXP EXPSQR REGION if SERVICE ==1, robust Linear regression lnEARN I Number of obs F( 4, 506) Prob > F R-squared Root MSE Coef Robust Std Err t P>ltl 511 54.75 0.0000 0.3020 67316 [95% Conf Interval] -+ -SCHOOL EXP EXPSQR REGION Constant (C) 0803544 0596245 -.0013375 184516 7.576502 0062809 0111976 0002699 0632772 1209342 12.79 5.32 -4.95 2.92 62.65 0.000 0.000 0.000 0.004 0.000 0680145 037625 -.0018679 0601977 7.338907 0926943 081624 -.0008072 3088343 7.814097 5.2.19 Return to schooling of individuals working in industry and construction sector in 2006 reg lnEARN SCHOOL EXP EXPSQR GEN STATE ETHINIC if INDU CON ==1, robust Linear regression Number of obs F( 6, 532) Prob > F R-squared Root MSE lnEARN I Coef I I I I I I I 0643115 0549377 -.0011042 1909828 3982269 -.2178019 8.004606 Robust Std Err t P>ltl 539 15.15 0.0000 0.1587 68894 [95% Conf Interval] -+ SCHOOL EXP EXPSQR GEN STATE ETHINIC Constant (C) 0102344 0103807 0002408 0668635 1538984 1255749 1339068 6.28 5.29 -4.58 2.86 59 -1.73 59.78 0.000 0.000 0.000 0.004 010 0.083 0.000 0442066 0345455 -.0015773 0596339 0959038 -.4644854 7.741555 0844163 0753299 -.0006311 3223317 70055 0288816 8.267657 5.2.20 Return to schooling of individuals working in service sector in 2006 reg lnEARN SCHOOL EXP EXPSQR REGION GEN if SERVICE ==1, robust 539 79.52 0.0000 0.3677 6529 Number of obs Linear regression F( 5, 533) Prob > F R-squared Root MSE I lnEARN I Coef Robust Std Err t [95% Conf Interval] P>ltl -+ SCHOOL EXP EXPSQR REGION GEN Constant (C) 0924436 0627206 -.0012483 1929701 0981636 7.591343 0056849 0093578 0002056 0555888 0556063 1102971 16.26 6.70 -6.07 3.47 1.77 68.83 0.000 0.000 0.000 0.001 0.078 0.000 0812761 0443378 -.0016522 0837701 -.0110708 7.374673 1036112 0811034 -.0008445 3021702 207398 (.808013 5.2.21 parameters of education levels in 2004 reg lnEARN PRIMA SECON HISCHO UNIV EXP EXPSQR REGION GEN STATE INDU CON SERVICE, robust Number of obs - Linear regression F( 11, 1921) Prob > F R-squared Root MSE lnEARN I Coef PRIMA SECON HISCHO UNIV EXP EXPSQR REGION GEN STATE INDU CON SERVICE Constant(C) I 0301975 0301248 4594454 7551682 0396027 -.0008688 1121098 284175 2873528 9113488 686474 7.250438 Robust Std Err t 1933 179.70 0.0000 0.4341 72372 [95% Conf Interval] P>ltl -+ -.0422252 0617291 076387 0889899 0054978 0001217 043852 0345283 0724208 0446582 0571386 0657296 0.72 0.49 6.01 8.49 7.20 -7.14 2.56 8.23 3.97 20.41 12.01 110.31 0.475 0.626 0.000 0.000 0.000 0.000 0.011 0.000 0.000 0.000 0.000 0.000 -.0526146 -.0909382 3096354 5806413 0288203 -.0011075 0261072 2164581 145321 8237652 5744139 7.121529 1130096 1511878 6092555 9296951 0503851 -.0006301 1981123 3518919 4293845 9989324 7985341 7.379346 5.2.22,parameters of education levels in 2006 reg lnEARN PRIMA SECON HISCHO UNIV EXP SERVICE, robust EXPSQR REGION GEN STATE INDU CON Linear regression Number of obs F( 11, 1921) Prob > F R-squared Root MSE I lnEARN I Coef Robust Std., Err t P>ltl 0404533 058066 079142 0.93 2.80 6.56 0.354 0.005 0.000 1933 179.28 0.0000 0.4419 70018 [95% Conf Interval] -+ -PRIMA SECON HISCHO 0375155 1626987 5192856 -.0418215 0488196 3640724 1168525 2765779 6744987 UNIV EXP EXPSQR REGION GEN STATE INDU CON SERVICE Constant (C) 899681 0426069 -.0009184 1032837 267712 1905496 9008625 7351158 7.473517 0864901 0052053 0001081 0437334 0334932 0702085 0409216 0549607 065504 10.40 8.19 -8.50 2.36 7.99 71 22.01 13.38 114.09 0.000 0.000 0.000 0.018 0.000 0.007 0.000 0.000 0.000 7300566 0323983 -.0011303 0175137 2020251 0528567 8206072 6273269 7.34505 1.069305 0528156 -.0007064 1890537 3333989 3282425 9811179 8429048 7.601983 -5.2.23 parameters of education levels of individuals in urban in 2004 reg lnEARN PRIMA SECON HISCHO UNIV EXP EXPSQR GEN STATE INDU CON SERVICE ETHINIC if REGION ==1 robust Linear regression lnEARN I Number of obs F ( 11 392) Prob > F R-squared Root MSE Coef Robust Std Err t P>ltl 404 29.00 0.0000 0.4205 68922 [95% Conf Interval] -+ -PRIMA SECON HISCHO UNIV EXP EXPSQR GEN STATE INDU CON SERVICE ETHINIC Constant (C) I -.0207703 0719075 4860703 6960283 0643258 -.0013451 2127305 2400156 7141936 6383284 -.3657812 7.295757 1129158 1208429 1212887 1600868 0123764 0002652 0722146 1109023 1404229 1429347 2168651 182708 -0.18 0.60 4.01 4.35 5.20 -5.07 2.95 2.16 5.09 4.47 -1.69 39.93 0.854 0.552 0.000 0.000 0.000 0.000 0.003 0.031 0.000 0.000 0.092 0.000 -.2427666 -.1656738 2476125 3812922 0399934 -.0018665 0707542 0219778 4381174 357314 -.7921453 6.936547 2012259 3094887 7245281 1.010764 0886581 -.0008237 3547069 4580533 9902699 9193429 0605829 7.654968 5.2.24 parameters of education levels of individuals in rural in 2004 reg lnEARN PRIMA SECON HISCHO UNIV EXP EXPSQR GEN STATE INDU CON SERVICE if REGION ==0 robust Linear regression Number of obs F( 10 1518} Prob > F R-squared Root MSE 1529 141.09 0.0000 0.3763 73065 -I lnEARN I Coef Robust Std Err t P>ltl [95% Conf Interval] -+ PRIMA SECON HISCHO UNIV EXP EXPSQR GEN STATE INDU CON SERVICE Constant (C) 0222897 -.0094149 4113935 7484558 0334763 -.000756 3030588 3191199 9530855 6465684 7.305946 0458861 0722639 1001272 0998105 0061394 0001365 0393421 0982321 0483123 0700855 0728059 0.49 -0.13 4.11 7.50 5.45 -5.54 7.70 3.25 19.73 9.23 100.35 0.627 0.896 0.000 0.000 0.000 0.000 0.000 0.001 0.000 Q.OOO 0.000 -.0677172 -.1511625 2149912 5526747 0214337 -.0010238 2258882 1264349 8583196 5090937 7.163135 1122966 1323327 6077958 9442368 0455189 -.0004882 3802294 5118048 1.047851 7840431 7.448757 5.2.25 parameters of education levels of individuals in urban in 2006 reg lnEARN PRIMA SECON HISCHO UNIV EXP if REGION ==1, robust EXPSQR GEN INDU CON SERVICE ETHINIC Linear regression lnEARN I Number of obs F ( 10, 419) Prob > F R-squared Root MSE Coef Robust Std Err t P>ltl 430 35.07 0.0000 0.4097 70967 [95% Conf Interval) ~ + PRIMA SECON HISCHO UNIV EXP EXPSQR GEN INDU CON SERVICE ETHINIC Constant (C) 2043153 403498 8429452 1.224998 0496828 -.0009715 2767865 790657 8391263 -.389771 7.319916 1073102 1305907 1247217 1222324 0112584 0002419 0701809 1363956 1322826 2184321 1795492 90 3.09 6.76 10.02 4.41 -4.02 3.94 5.80 6.34 -1.78 40.77 0.058 0.002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.075 0.000 -.0066181 1468036 5977869 9847329 0275529 -.0014469 138836 5225521 579106 -.8191302 6.966987 4152487 6601925 1.088103 465263 0718128 -.000496 414737 1.058762 1.099146 0395882 7.672846 -5.2.26 parameters of education levels of individuals in rural in 2006 reg lnEARN PRIMA SECON HISCHO UNIV EXP REGION ==0, robust EXPSQR GEN STATE INDU CON SERVICE if Linear regression lnEARN I Number of obs F( 10, 1492) Prob > F R-squared Root MSE Coef Robust Std Err t P>ltl 1503 134.27 0.0000 0.4099 6934 [95% Conf Interval) -+ -PRIMA SECON HISCHO UNIV EXP EXPSQR GEN STATE INDU CON SERVICE Constant (C) 0017679 0932211 3937151 782144 0395489 -.0008932 2730159 2440665 9443596 6724686 7.549684 0435396 0641166 1090627 1173887 005758 0001192 0380123 096843 0431342 0644821 0715111 0.04 1.45 3.61 6.66 6.87 -7.49 7.18 2.52 21.89 10.43 105.57 0.968 0.146 0.000 0.000 0.000 0.000 0.000 0.012 0.000 0.000 0.000 -.0836373 -.0325472 1797825 5518796 0282543 -.0011271 1984527 0541036 8597495 5459835 7.409411 0871732 2189894 6076476 1.012408 0508435 -.0006593 3475792 4340294 1.02897 7989537 7.689957 5.2.27 parameters of education levels of male in 2004 reg lnEARN PRIMA SECON HISCHO UNIV EXP EXPSQR REGION STATE INDU CON SERVICE if GEN ==1 , robust Linear regression I 1nEARN I Number of obs F( 10, 1183) Prob > F R-squared Root MSE Coef Robust Std Err t P>ltl 1194 89.90 0.0000 0.3703 72449 [95% Conf Interval) -+ PRIMA SECON HISCHO UNIV EXP EXPSQR REGION STATE INDU CON SERVICE Constant (C) I I I I I I I I I I I 0407118 0050984 3140303 6792519 0451669 -.0009598 1207926 2657828 8885561 • 6238702 7.513852 0523002 0745094 0995411 1256397 0072146 0001628 0559449 108581 0512089 0818288 0816836 0.78 0.07 3.15 5.41 6.26 -5.90 2.16 2.45 17.35 62 91.99 0.436 0.945 0.002 0.000 0.000 0.000 0.031 0.015 0.000 000 0.000 -.0618998 -.1410869 1187336 4327504 031012 -.0012792 0110304 0527499 7880856 633244 7.353592 1433234 1512837 509327 9257535 0593218 -.0006404 2305549 4788156 9890266 7844159 7.674113 5.2.28 parameters of education levels of female in 2004 reg lnEARN ==0 , robust PRIMA SECON HISCHO UNIV EXP EXPSQR STATE INDU CON SERVICE if Linear regression Number of obs F( 9, 729) Prob > F R-squared Root MSE Coef lnEARN I Robust Std Err P>ltl t GEN 739 138.44 0.0000 0.5027 71317 [95% Conf Interval] -+ -PRIMA SECON HISCHO UNIV EXP EXPSQR STATE INDU CON SERVICE Constant (C) I I I I I I I I I I -.0018428 0876439 6529107 8743112 0318337 -.0007289 345713 • 9356934 7916139 7.283991 0719391 1107117 1099419 1210845 0083501 0001809 0880206 0833939 0803772 0999661 -0.03 0.79 5.94 7.22 3.81 -4.03 3.93 11.22 9.85 72.86 0.980 0.429 0.000 0.000 0.000 0.000 0.000 000 0.000 0.000 -.1430753 -.1297079 4370701 6365952 0154405 -.0010839 1729088 7719726 6338155 7.087735 1393898 3049957 8687512 1.112027 0482269 -.0003738 5185171 099414 9494122 7.480246 5.2.29 parameters of education levels of male in 2006 reg lnEARN ==1, robust PRIMA SECON HISCHO UNIV EXP EXPSQR REGION INDU CON SERVICE if GEN Linear regression I lnEARN I Number of obs F( 9, 1146) Prob > F R-squared Root MSE Coef Robust Std Err t P>ltl 1156 97.55 0.0000 0.3955 68669 [95% Conf Interval] -+ PRIMA SECON HISCHO UNIV EXP EXPSQR REGION INDU CON SERVICE Constant (C) -.0280156 1218349 4530509 9079942 0472464 -.000982 1206166 8736258 7446158 7.751687 0495412 064482 0945129 1046383 0066947 0001433 054854 0484352 0690112 0785352 -0.57 1.89 4.79 8.68 7.06 -6.85 2.20 18.04 10.79 98.70 0.572 0.059 0.000 0.000 0.000 0.000 0.028 0.000 0.000 0.000 -.1252172 -.0046813 2676133 7026901 0341111 -.0012632 012991 7785942 6092133 7.597598 0691859 248351 6384886 1.113298 0603817 -.0007008 2282422 9686574 8800182 7.905776 5.2.30 parameters of education levels of female in 2006 reg lnEARN ==0 robust PRIMA SECON HISCHO UNIV EXP EXPSQR STATE INDU CON SERVICE if GEN Number of obs F( 767) Prob > F R-squared Root MSE Linear regression lnEARN I Coef Robust Std Err t P>ltl 777 135.18 0.0000 0.4809 71537 [95% Conf Interval) -+ PRIMA SECON HISCHO UNIV EXP EXPSQR STATE INDU CON SERVICE Constant (C) 1320938 2614299 6594951 9512718 0402917 -.0008654 313526 9551942 7946468 7.405298 0681518 1133049 1246926 1318424 0082468 0001666 1078079 0745191 0720815 1036234 1.94 2.31 5.29 7.22 4.89 -5.19 2.91 12.82 11.02 71.46 0.053 0.021 0.000 0.000 0.000 0.000 0.004 0.000 0.000 0.000 -.0016925 0390055 4147158 692457 0241027 -.0011925 1018923 8089086 6531462 7.201879 2658801 4838544 9042744 1.210087 0564806 -.0005384 5251596 1.10148 9361473 7.608717 5.2.31 parameters of education levels of individuals in public sector in 2004 reg lnEARN PRIMA SECON HISCHO UNIV EXP EXPSQR REGION INDU CON SERVICE if STATE ==1 robust Number of obs F( 309) Prob > F R-squared Root MSE Linear regression lnEARN I Coef Robust Std Err t P>ltl 319 22.28 0.0000 0.4010 48357 [95% Conf Interval) -+ -. PRIMA SECON HISCHO UNIV EXP EXPSQR REGION INDU CON SERVICE Constant (C) 2054246 3658719 8747516 1.156554 05177 -.0011138 1011156 -.5248553 -1.02559 8.881587 1773389 1740529 1693412 1719243 0094507 0002371 0591586 2461963 2407963 2842947 1.16 2.10 5.17 6.73 5.48 -4.70 1.71 -2.13 -4.26 31.24 0.248 0.036 0.000 0.000 0.000 0.000 0.088 0.034 0.000 0.000 -.1435199 023393 5415439 8182636 0331741 -.0015804 -.015289 -1.009289 -1.499398 8.322188 5543691 7083508 1.20795~ 1.494845 0703659 -.0006472 2175202 -.0404221 -.5517819 9.440985 5.2.32 parameters of education levels of individuals in private sector in 2004 reg lnEARN ==0 robust PRIMA SECON HISCHO UNIV EXP EXPSQR GEN INDU CON SERVICE if Number of obs F( 1604) Prob > F R-squared Root MSE Linear regression lnEARN I Coef PRIMA I 022371 Robust Std Err t P>ltl 0434342 0.52 0.607 STATE 1614 90.17 0.0000 0.3218 75135 [95% Conf Interval) -+ .0628227 1075647 SECON HISCHO UNIV EXP EXPSQR GEN INDU CON SERVICE Constant {C) 0285379 3378581 9356615 037798 -.0008196 3513972 9293435 8081073 7.219461 0664276 107234 2899598 0063212 0001361 0404552 0452556 0595489 0761448 0.43 3.15 3.23 5.98 -6.02 8.69 20.54 13.57 94.81 0.668 0.002 0.001 0.000 0.000 0.000 0.000 0.000 0.000 -.1017561 1275232 3669216 0253993 -.0010866 2720466 8405771 6913054 7.070107 1588318 5481931 504401 0501966 -.0005526 4307477 01811 9249091 7.368814 -5.2.33 parameters of education levels of individuals in public sector in 2006 reg lnEARN robust PRIMA SECON HISCHO UNIV EXP EXPSQR REGION SERVICE if STATE Linear regression lnEARN I Number of obs F{ 8, 279) Prob > F R-squared Root MSE Coef Robust Std Err t P>ltl ==1, 288 19.85 0.0000 0.3426 56501 [95% Conf Interval] -+ ~ - PRIMA SECON HISCHO UNIV EXP EXPSQR REGION SERVICE Constant {C) 0579546 4363146 7846685 1.116409 0631776 -.0012765 2326498 -.5094239 8.537919 2771874 275132 2838207 2777108 0149534 0003414 0732884 1718391 2817536 0.21 59 2.76 4.02 4.22 -3.74 1.7 -2.96 30.30 0.835 0.114 0.006 0.000 0.000 0.000 0.002 0.003 0.000 -.4876897 -.1052836 2259666 5697347 0337418 -.0019484 0883814 -.8476897 7.983286 603599 9779128 34337 663084 0926134 -.0006045 3769182 - 1711581 9.092552 -5.2.34 parameters of education levels of individuals in private sector in 2006 reg lnEARN ==0, robust PRIMA SECON HISCHO UNIV EXP EXPSQR GEN INDU CON SERVICE if STATE Linear regression lnEARN I Number of obs F { 9, 1635) Prob > F R-squared Root MSE Coef Robust Std Err t P>ltl 1645 109.32 0.0000 0.3495 71523 [95% Conf Interval] -+ PRIMA SECON HISCHO UNIV EXP EXPSQR GEN INDU CON SERVICE Constant {C) 0346577 1320909 4840029 1.051492 0382734 -.000834 3173234 9165424 8060171 7.493308 0408076 0617112 1025288 2098075 005618 0001155 0373318 0407435 0532152 0708199 0.85 2.14 4.72 5.01 6.81 -7.22 8.50 22.50 15.15 105.81 0.396 0.032 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 -.045383 0110495 2829013 6399725 0272542 -.0010605 2441001 8366274 7016399 7.3544 1146984 2531323 6851045 1.463012 0492925 -.0006074 3905467 9964574 9103942 7.632215 5.2.35 parameters of education levels of individuals in industry and construction sector in 2004 reg lnEARN PRIMA SECON HISCHO UNIV EXP EXPSQR GEN STATE INDU_CON==1 , robust Linear regression lnEARN I ETHINIC if Number of obs F( 9, 428) Frob > F R-squared Root MSE Coef Robust Std Err t P>ltl 438 14.32 0.0000 0.2126 64924 [95% Conf Interval] -+ PRIMA SECON HISCHO UNIV EXP EXPSQR GEN STATE ETHINIC Constant (C) 1388368 152737 4610668 319236 0446547 -.0009061 3228269 4663744 -.3398455 8.014582 0870034 1024447 1276405 1780983 010317 000247 0762217 0913568 1621581 1323393 60 49 3.61 7.41 4.33 -3.67 4.24 5.10 -2.10 60.56 0.111 0.137 0.000 0.000 0.000 0.000 0.000 0.000 0.037 0.000 -.0321703 -.0486203 2101865 9691796 0243764 -.0013915 1730114 2868107 -.6585708 7.754466 3098439 3540944 711947 1.669292 0649331 -.0004207 4726424 6459382 -.0211203 8.274698 5.2.36 parameters of education levels of individuals in service sector in 2004 reg lnEARN robust PRIMA SECON HISCHO UNIV EXP EXPSQR REGION GEN if SERVICE==1 , Number of obs F( 8, 502) Frob > F R-squared Root MSE Linear regression lnEARN I Coef Robust Std Err t P>ltl 511 30.50 0.0000 0.3263 66398 [95% Conf Interval] -+ -PRIMA SECON HISCHO UNIV EXP EXPSQR REGION GEN Constant (C) I 1003106 I 2437456 I 770621 I 9778616 I 0553121 I -.0012598 I 1920373 I .0981129 I 7.877572 1092238 108843 0841348 0850791 0107819 0002623 0613453 059298 1207151 0.92 2.24 9.16 11.49 5.13 -4.80 3.13 1.65 65.26 0.359 0.026 0.000 0.000 0.000 0.000 0.002 0.099 0.000 -.1142815 0299017 6053212 8107065 0341289 -.0017752 0715121 -.01839 7.640403 3149027 4575894 9359208 1.145017 0764953 -.0007444 3125626 2146158 8.114741 5.2.37 parameters of education levels of individuals in industry and construction sector in 2006 reg lnEARN ==1, robust PRIMA SECON HISCHO UNIV EXP EXPSQR GEN STATE ETHINIC if Linear regression I lnEARN I Number of obs F( 9, 529) Frob > F R-squared Root MSE Coef Robust Std Err t P>ltl INDU CON 539 12.42 0.0000 0.1550 69241 [95% Conf Interval] -+ PRIMA SECON HISCHO UNIV EXP EXPSQR GEN STATE ETHINIC Constant (C) 1753523 3682176 5230911 515573 0530469 - 0011114 2161284 365534 -.2802854 8.244672 0723525 0912361 1515985 2049575 0103909 0002415 0682051 1482819 1202419 1264945 2.42 4.04 3.45 7.39 5.11 -4.60 3.17 2.47 -2.33 65.18 0.016 0.000 0.001 0.000 0.000 0.000 0.002 0.014 0.020 0.000 0332188 1889881 2252821 1.112943 0326344 -.0015859 0821424 0742404 -.5164956 7.996178 3174859 547447 8209001 1.918204 0734594 -.0006369 3501144 6568277 -.0440752 8.493165 5.2.38 parameters of education levels of individuals in service sector in 2006 reg lnEARN robust PRIMA SECON HISCHO UNIV EXP EXPSQR REGION GEN if Number of obs F( 8, 530) Prob > F R-squared Root MSE Linear regression lnEARN I SERVICE ==1, Coef Robust Std Err t P>ltl 539 52.74 0.0000 0.3816 6475 [95% Conf Interval] -+ -PRIMA SECON HISCHO UNIV EXP EXPSQR REGION GEN Constant (C) I I I I I I I I 1066646 4366458 8581162 1.135782 0590422 -.0012156 2282967 1519919 7.959062 0993735 1042086 0886685 0884913 0094085 000206 0550165 0554153 1173266 1.07 4.19 9.68 12.83 6.28 -5.90 4.15 2.74 67.84 0.284 0.000 0.000 0.000 0.000 0.000 0.000 0.006 0.000 -.0885496 2319332 6839313 9619451 0405595 -.0016202 1202196 0431313 7.728579 3018789 6413584 1.032301 1.309619 0775248 -.0008109 3363738 2608525 8.189544 ... human capital l Investing in human capital, Other, mainly automatic increase of human capital - Learning (from education and training - Learning by doing - Receiving tacit knowledge - Inventing,... fundamental of the human capital theory is the analogy between physical and human capital that means individuals can invest in human capital by education and training with an expectation of higher returns. .. improvement in education has been a significant explanatory variable for East Asian economic growth In fact, East Asian countries are not abundant and rich in physical capital as well as natural resources