1 Bộ GIÁO DỤC VÀ ĐÀO TẠO ĐẠI HỌC KINH TẾ THÀNH PHỔ HÔ CHÍ MINH BÁO CÁO TÓNG KÉT ĐÈ TÀI NGHIÊN cứu KHOA HỌC THAM GIA XÉT GIẢI THƯỚNG ‘’NHÀ NGHIÊN CỨU TRẺ UEH” NĂM 2024 < The influence of educational level on the income of people in the Central Highlands > Thuộc nhóm chuyên ngành: Kinh tế 1 2 TABLE OF CONTENTS List of tables LIST OF ACRONYMS Abstract Chapter I. Objectives of the study 1. Research subjects Chapter IL T he General Manager 2. Profitability for students with educational level 2.
The impact of educational qualifications on labor productivity and income 2. The impact of education level on income through Sheepskin Effect 2.2 Analytical methods and data from previous research 2. Number of data used 2. Contributions from previous research 2.
Limitation from previous research Chapter III.2 Below is the specific model of this research article : Chapter IV. Reconciliation of public money according to the number of years of employment of an employee 4. Public remuneration according to educational level 2 3 4. Public money allocation according to number of years of education and other factors V.
Conclusions and recommendations 5. Request REFERENCES APPENDIX. 3 4 List of tables Table 4.1 Statistics describe the variables in the model Table 4.2 Statistics on educational level and average salary received Table 4.3 Regression results of the single wage model of 3 provinces Dak Lak, Lam Dong, Gia Lai in 2020 Table 4.4 Regression results of wage model according to educational level Table 4.5 Regression results of wages according to years of education and other factors Table 4.6 Regression results of returns to education for men and women 4 5 LIST OF ACRONYMS VHLSS Vietnam Household Living Survey of living Standards Survey standards of Vietnamese households UNESCO United Nations Educational, Unitied Nations Scientific and Cultural Educational, Scientific Organization and Cultural Organization IRR Internal Rate of Return Profit rate PRR Private Rate of Return Specific rate of return FEM Fixed Effects Model Fixed effects model OLS Ordinary least-squares Least squares method 5 6 Abstract This research uses the 2020 data set on individuals with income in the Central Highlands taken from the data set of the 2020 Vietnam Living Standards Survey. Results of analyzing the personal income function for we see that the important factor affecting each individual's income is education.
When each individual's innate ability is not controlled, an additional year of schooling can increase income by 5. When controlling for this factor by a model that fixes the innate abilities of individuals in the household, the increase in income is about I %. Wages for people with less than a high school education do not differ much. However, when each individual's education level is higher, specifically college and university degrees or higher, their wages are 44.9% higher than other levels of education.
From the above results, it shows that the return on education in 2020 achieved much better results than the results of previous research articles, mainly using data from the 2002 Vietnam Living Standards Survey, 2008 and 2010. Shows that personal education level is an increasingly important factor in determining workers' wages, even in the Central Highlands where the school dropout rate is high, agricultural production is predominant, and people still not interested in studying. Question Education is always a special topic that attracts the attention of not only those involved in teaching and learning but also everyone. Furthermore, education and training is also a lever to actively develop the economy and improve quality of life.
Therefore, in order for Vietnam to move towards globalization and a knowledge economy as well as for people's lives to progress and develop sustainably, we need to promote education and training not only in the provinces, big cities but also need to pay special attention to remote areas, the highlands of the Central Highlands is an example. The Central Highlands or South Central Highlands is an area with plateau terrain including 5 provinces: Kon Turn, Gia Lai, Dak Lak, Dak Nong and Lam Dong. Blessed by nature, the Central Highlands has climate, soil and many rare resources and minerals that cannot be found anywhere else. The Central Highlands is known as a legendary land, home to nearly 6 million people, including 52 ethnic minorities.
The Central Highlands is also a particularly important strategic area in terms of economy, society, ecological environment, defense - security and foreign affairs of the country. However, compared to other regions in the country, the socio-economic conditions of the Central Highlands have many difficulties, such as lack of skilled labor, underdeveloped infrastructure, and the interaction of many ethnic groups living in a small area and especially with a low level of education leading to many difficulties in living standards. The relationship between educational level and income has been of interest to many scholars since more than half a decade ago, specifically there have been more than 800 research articles on this issue in nearly 20 years since the second half of the century 19 (W. The return to an individual year of schooling was estimated at 5% at the time the author used 1993 VHLSS data (Moock et al.
Thanh et al., (2006) used 7 8 2002 VHLSS data to evaluate the returns to education and showed that an additional year of high school would increase income by 11. Research by Doan & Gibson (2010) shows that the return on education in Vietnam increased over time, increasing by nearly 7% in 10 years from 2. This shows that education has a certain impact on people's income. However, each economic region or living area has a different formation and development process (Nguyen Duy Tho, 2013).
Therefore, the Central Highlands - a highland region suffering from many socio-economic difficulties, needs to be given more special attention in terms of education and training to improve the quality of people's lives. That's why our group conducted the research project "The influence of educational level on the income of people in the Central Highlands". Objectives of the study 1. General objective Using VHLSS data in 2020 to evaluate the impact of educational level on the income of workers in the Central Highlands in 2020.
Detail goal - Estimate the return of education on the income of working people in the Central Highlands in 2020 and draw conclusions. - Assess changes in the impact of education on the income of salaried workers when there arc differences in personal factors such as gender, qualifications, economic class, work experience job. - Propose measures to raise people's awareness of the importance of education as well as the impact of education on income and solutions to help increase income. Research question - What is the return rate of Vietnamese education in the Central Highlands region in 2020.
When increasing one year of schooling, how many percent will a worker's income 8 9 increase ? - How different is the profit rate of Vietnamese education in the Central Highlands region in 2020 when there are differences in personal factors: gender, qualifications, economic class, work experience. - Is education a sustainable path to income for people in the Central Highlands? 1. Spatial scope Research topic on the labor market in the Central Highlands region. Time range The study uses secondary data sources extracted from the latest 2020 Vietnam Living Standards Survey data set of the General Statistics Office.
Research subjects The research topic focuses on workers in the Central Highlands with income in 2020. Academic level A person's level of education is the highest grade he or she has completed (According to the International Classification of Education - ISCED). For operational purposes, the highest level of education a person has achieved will represent the level of education completed, often confirmed by certified certificates or degrees (UNESCO, 2011). According to the current Law on Education and Training of Vietnam, our country's educational establishments include formal educational establishments and continuing educational establishments, from preschool education to upper secondary education.
9 10 general education, vocational training to professional education levels. Return on educational attainment According to Blundell et al., (2001) the concepts of benefits of education are private benefits, social benefits and labor productivity benefits. This is calculated by evaluating the Internal Rate of Return (IRR). Hartog et al., (1999) define the return on education as subtracting the present value of future profit streams from the present value of future investments.
The specific return on education is income minus taxes. The social return on education is the costs and benefits of the entire society. All of these calculations assess the impact of education on earnings. Because the social rate of return also includes external factors and many other factors that cannot be measured, so in these studies, when talking about the rate of return on education, it can be understood as the separate rate of return.
Human Capital The types of capital we often know are financial capital, physical capital, and human capital. And investing in learning, training, healthcare , etc. are investments in human capital. The importance of human capital’s influence on economic growth has long been holly debated among researchers.
According to the research of Manuclli & Scshadri (2014), the important factor contributing to economic promotion is human capital. The quality of human capital is proportional to development. This study also identifies that the quality of human capital greatly affects the differences in output products in different countries. In poor countries, low-income individuals not only have fewer years of schooling than other countries, but human capital is still very low, which can be understood as the poor quality of leaching during the years of schooling, not high either.
Workers The income-earning workers mentioned in the study are manual workers (workers, janitors, employees , etc.) or knowledge workers (employees, civil servants, officials). The impact of educational level on labor productivity' and income The Cobb-Douglas function shows that the total function of productivity factors (A), capital input (K) and labor input (L) is the total quantity of products produced. So increasing any factor (A, K or L) will help increase production productivity. Factors such as capital and labor are tangible while factor productivity (A) is often considered intangible and often ranges from technology to worker knowledge (Human Capital).
Manuelli & Seshadri’s model (2014) believes that human capital is the result of the following stages: Early childhood, Schooling and On-job-training. From there, it can be seen that educational level plays an extremely important role in perfecting human capital, thereby increasing worker productivity. Through time studying, individuals will certainly acquire new knowledge and skills, thereby increasing their working efficiency. Welch (1974) argues that if we assume fixed prices in the same market, then individual differences in income reflect individual differences in production attributes.
It can be said that labor productivity has an impact on each person's income. The impact of educational level on income through the Sheepskin Effect The “sheepskin effect” posits that attaining higher degrees increases wages. (Welch, 1974) stated that one of the easily calculated factors to predict a person's salary is the number of years of schooling that person completed. This means that because people with more years of schooling are often perceived to have more knowledge and skills than people with less years of schooling, they can expect to receive higher incomes.
Or employers think that people with more ability and skills than others tend to have higher education, so they arc willing to pay these people a higher income. Therefore, they view years of schooling as a way to identify those who are more likely to be productive. Therefore, people often tend to study to achieve higher degrees, as a way to show employers that they arc capable and worthy of receiving a high income. Therefore, the number of years of schooling a person has is greatly influenced by this.