Earnings and Education in Rural South Vietnam

Abstract

JSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use, and build upon a wide range of content in a trusted digital archive. We use information technology and tools to increase productivity and facilitate new forms of scholarship. For more information about JSTOR, please contact support@jstor.org.. University of Wisconsin Press andThe Board of Regents of the University of Wisconsin System are collaborating with JSTOR to digitize, preserve and extend access to The Journal of Human Resources. ABSTRACT This article is concerned with the measurement of the effect of a year of education on individual income in rural South Vietnam. Data from the 1964 Rural Income and Expenditure Sample Survey of South Vietnam are analyzed with a multiple regression model to detect the effect of education on individual income over-all and by occupation. The regression results show that education has a significant positive effect on individual income despite the generally low level of educational attainment among the rural South Vietnamese. Although the exact rate of return on investment in education cannot be computed because of lack of cost data, the evidence presented suggests that additional investment in literacy education probably would be economically justified. As an outgrowth of the renewed interest of economists in the role of human capital in the development process,' the relationship between education and

Education and Earnings in a Transition Economy (Vietnam)

“…Overall, the average private rate of return on another year of schooling is 5 percent. This is very different from the previous and dated analysis limited to rural South Vietnam (Stroup and Hargrove 1969). An additional year of schooling at that time in South Vietnam led to an increase in earnings of 16.8 percent in 1964.…”

“…The most recent study of the benefits of education in Vietnam appeared almost 30 years ago (Stroup and Hargrove 1969), and this covered only a part of what was then South Vietnam.…”

The returns to education and wage penalty from overeducation: New evidence from Vietnam

“…Mincer's model has been empirically tested in several countries with different periods and methodologies. In the context of Vietnam, Stroup and Hargrove’s (1969) study was the first investigating the returns to education in South Vietnam and found that the rate is 17%. Then, several papers examined the returns to education in Vietnam, but the rate was much lower than in the first study.…”

The Economic Case for Education in Vietnam

“…Perhaps the first study of the benefits of education in Vietnam appeared almost 50 years ago (Stroup and Hargrove 1969). In an analysis limited to rural South Vietnam in 1964, another year of schooling increased earnings by 17 percent.…”