Does education improve employee benefits in Vietnam? The first evidence from matched employer–employee data

Tran Trung,Le Thi Thu Hien,Nguyen Tien-Trung,Trinh Thi Phuong Thao,John Lee

doi:10.1080/2331186x.2019.1662162

Abstract

Based on a uniquely matched firm-worker panel dataset for 2013 and 2015, this study is the first to consider the effect of education on employee benefits in terms of wages and quality of employment...

Highlights

There have been numerous studies measuring the value of investment in education, seeking to determine whether an optimal investment decision was made by individuals or governments
The findings suggest that higher education programs play an important role in employee benefits, which supports the argument that investment in higher education should be viewed as an investment in human capital in Vietnam
Orientation education provided through high schools and vocational training institutions is carried out in parallel, guiding students in two possible directions: (i) career orientation, to provide basic skills to prepare for entering the labor market; and (ii) school orientation, which seeks to provide solid knowledge to prepare for higher education

Summary

Introduction

There have been numerous studies measuring the value of investment in education, seeking to determine whether an optimal investment decision was made by individuals or governments. Kavuma, Morrissey, and Upward (2015) noted that Becker’s theory linked workers’ knowledge levels to their achievements in formal schooling, which suggests that more years of schooling would improve productivity and wages According to this theory, acquiring better education allows workers to maximize the present value of lifetime earnings and the demand for various levels of education can be explained by private returns. Primary education High school College affluence in Vietnam Part 4 will offer empirical evidence on these research questions

Data sources and methodology

Findings

Conclusions and policy implications