The influence of educational level on the income of people in the Central Highland

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 5.9 % . When controlling for this factor by a model that fixes the innate abilities of individuals in the household, the increase in income is about 1%. 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 44.7% and 60.9% 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