This document summarizes a working paper that estimates the labour market returns to higher education in Vietnam using data from the Vietnam Household Living Standards Survey. The paper employs ordinary least squares, instrumental variables, and treatment effect models to estimate the return to a four-year university education in Vietnam in 2008. The estimates reveal that the return to university education is approximately 17% annually based on the IV model and 17.8% based on the OLS and treatment effect models. This indicates that the bias from using OLS is small in the context of Vietnam. The estimated return has increased significantly since economic reforms began in Vietnam in the late 1980s.
This paper studies the determinants of personal income including the returns to education. In the process this paper estimates how incomes are affected by characteristics such as gender, caste, language etc. Using a maximum likelihood probability model, private returns to education are estimated using data from a Ministry of Finance Survey on Incomes and Savings conducted in 2004-05. We find that greater levels of education increase both the likelihood of being employed as well as the income earned from work. However, the returns from elementary (primary and middle) education are quite low. We also find that ceteris paribus women, lower social groups, rural residents, non-English speakers have both significantly lower incomes and significantly lower likelihood of being employed. Our results indicate that education should be geared towards ensuring flexibility in the students’ occupational choices.
Conclusion
Using a recently made available data on incomes we analyze how a range of household, individual and educational factors affects incomes. We find that the data for India show similar patterns as found for other countries, however the quantum differs. The key results are as follows:
Non-education characteristics
Individuals from SC and ST households are likely to have about 10 percent lower incomes than those from non-SC/ST households everything else remaining the same.
Women’s incomes are likely to be about a third lower than males having the same household and educational characteristics. They are also much more likely to be unemployed than males.
Those who are currently married are likely to have higher incomes and higher likelihood of being employed. Other results also indicate an interesting association between the marriage and labour markets.
Knowledge of the English language has a significant impact on incomes. Incomes of those who have knowledge of the language are between 18 to 22 percent higher depending upon whether they can merely understand or converse in it.
We also find that occupation effects are highly significant and explain a significant part of the income variations.
Education characteristics
Compared to illiterates those who have completed primary have 50% greater incomes, those who have completed middle school have incomes greater by 75%, those who have completed schooling have incomes greater by 172%, graduates by 278% and professional courses by 356%
After correcting for household and individual characteristics and state effects, compared to illiterates those who have completed primary have 31% greater incomes, those who have completed middle school by 45%, those who have completed schooling by 89%, graduates by 136% and professionals by 171%
After also including fixed occupation effects, compared to illiterates those who have completed primary have incomes greater by 15%, those who have completed middle school by 21%, those who have completed schooling by 42%, graduates by 69% and professional courses by 97%.
In other words, we find that the returns to greater education increase significantly as the level of education increases. This would be fine if the returns at the lowest level were high. However that is not the case and may be an important reason behind the high drop out rate. We also find evidence that there are significant rigidities in the labour market in the sense that household and occupational factors explain much of the variance in incomes. With greater education one may be able to break these rigidities, however, that requires children to remain in school.
For educational policy the message is quite clear: Quality of delivery, and content that enables flexibility in later occupational choice. This will ensure that rational children can expect to gain from the benefits of formal education, and therefore also remain in school longer.
ANALYSIS OF RISING TUITION RATES IN THE UNITED STATES BASED ON CLUSTERING ANA...cscpconf
Since higher education is one of the major driving forces for country development and social prosperity, and tuition plays a significant role in determining whether or not a person can
afford to receive higher education, the rising tuition is a topic of big concern today. So it is essentially necessary to understand what factors affect the tuition and how they increase or decrease the tuition. Many existing studies on the rising tuition either lack large amounts of real data and proper quantitative models to support their conclusions, or are limited to focus on only a few factors that might affect the tuition, which fail to make a comprehensive analysis. In this paper, we explore a wide variety of factors that might affect the tuition growth rate by use of
large amounts of authentic data and different quantitative methods such as clustering analysis and regression models.
Analysis of Rising Tutition Rates in The United States Based on Clustering An...csandit
Since higher education is one of the major driving
forces for country development and social
prosperity, and tuition plays a significant role in
determining whether or not a person can
afford to receive higher education, the rising tuit
ion is a topic of big concern today. So it is
essentially necessary to understand what factors af
fect the tuition and how they increase or
decrease the tuition. Many existing studies on the
rising tuition either lack large amounts of real
data and proper quantitative models to support thei
r conclusions, or are limited to focus on only
a few factors that might affect the tuition, which
fail to make a comprehensive analysis. In this
paper, we explore a wide variety of factors that mi
ght affect the tuition growth rate by use of
large amounts of authentic data and different quant
itative methods such as clustering analysis
and regression models.
This paper studies the determinants of personal income including the returns to education. In the process this paper estimates how incomes are affected by characteristics such as gender, caste, language etc. Using a maximum likelihood probability model, private returns to education are estimated using data from a Ministry of Finance Survey on Incomes and Savings conducted in 2004-05. We find that greater levels of education increase both the likelihood of being employed as well as the income earned from work. However, the returns from elementary (primary and middle) education are quite low. We also find that ceteris paribus women, lower social groups, rural residents, non-English speakers have both significantly lower incomes and significantly lower likelihood of being employed. Our results indicate that education should be geared towards ensuring flexibility in the students’ occupational choices.
Conclusion
Using a recently made available data on incomes we analyze how a range of household, individual and educational factors affects incomes. We find that the data for India show similar patterns as found for other countries, however the quantum differs. The key results are as follows:
Non-education characteristics
Individuals from SC and ST households are likely to have about 10 percent lower incomes than those from non-SC/ST households everything else remaining the same.
Women’s incomes are likely to be about a third lower than males having the same household and educational characteristics. They are also much more likely to be unemployed than males.
Those who are currently married are likely to have higher incomes and higher likelihood of being employed. Other results also indicate an interesting association between the marriage and labour markets.
Knowledge of the English language has a significant impact on incomes. Incomes of those who have knowledge of the language are between 18 to 22 percent higher depending upon whether they can merely understand or converse in it.
We also find that occupation effects are highly significant and explain a significant part of the income variations.
Education characteristics
Compared to illiterates those who have completed primary have 50% greater incomes, those who have completed middle school have incomes greater by 75%, those who have completed schooling have incomes greater by 172%, graduates by 278% and professional courses by 356%
After correcting for household and individual characteristics and state effects, compared to illiterates those who have completed primary have 31% greater incomes, those who have completed middle school by 45%, those who have completed schooling by 89%, graduates by 136% and professionals by 171%
After also including fixed occupation effects, compared to illiterates those who have completed primary have incomes greater by 15%, those who have completed middle school by 21%, those who have completed schooling by 42%, graduates by 69% and professional courses by 97%.
In other words, we find that the returns to greater education increase significantly as the level of education increases. This would be fine if the returns at the lowest level were high. However that is not the case and may be an important reason behind the high drop out rate. We also find evidence that there are significant rigidities in the labour market in the sense that household and occupational factors explain much of the variance in incomes. With greater education one may be able to break these rigidities, however, that requires children to remain in school.
For educational policy the message is quite clear: Quality of delivery, and content that enables flexibility in later occupational choice. This will ensure that rational children can expect to gain from the benefits of formal education, and therefore also remain in school longer.
ANALYSIS OF RISING TUITION RATES IN THE UNITED STATES BASED ON CLUSTERING ANA...cscpconf
Since higher education is one of the major driving forces for country development and social prosperity, and tuition plays a significant role in determining whether or not a person can
afford to receive higher education, the rising tuition is a topic of big concern today. So it is essentially necessary to understand what factors affect the tuition and how they increase or decrease the tuition. Many existing studies on the rising tuition either lack large amounts of real data and proper quantitative models to support their conclusions, or are limited to focus on only a few factors that might affect the tuition, which fail to make a comprehensive analysis. In this paper, we explore a wide variety of factors that might affect the tuition growth rate by use of
large amounts of authentic data and different quantitative methods such as clustering analysis and regression models.
Analysis of Rising Tutition Rates in The United States Based on Clustering An...csandit
Since higher education is one of the major driving
forces for country development and social
prosperity, and tuition plays a significant role in
determining whether or not a person can
afford to receive higher education, the rising tuit
ion is a topic of big concern today. So it is
essentially necessary to understand what factors af
fect the tuition and how they increase or
decrease the tuition. Many existing studies on the
rising tuition either lack large amounts of real
data and proper quantitative models to support thei
r conclusions, or are limited to focus on only
a few factors that might affect the tuition, which
fail to make a comprehensive analysis. In this
paper, we explore a wide variety of factors that mi
ght affect the tuition growth rate by use of
large amounts of authentic data and different quant
itative methods such as clustering analysis
and regression models.
Arising from the questions “Would all types of human capital affect economic growth identically? And which type of schooling - primary, secondary, or tertiary – should public policy promote?”, this study examines the nexus between different educational levels and Indonesia’s economic growth over a reference period 1984-2014. During this period, education expansion took place at all three levels of education reflecting structural changes tied within the policies under the Millennium Development Goals (MDG’s) as the key and powerful factor for sustainable economic development. The study applies the augmented Lucas endogenous growth model and employs the autoregressive distributed lag model. The empirical analysis reveals a long-run relation between education and economic growth. The estimated long-run and short-run elasticity of different education levels reveal that, overall, human capital structure in Indonesia is still at the stage of promoting economic growth and identifies tertiary education as the main level for development. The findings reveal that education level matters to economic growth. Further, the empirical evidence helps shed light on why empirical studies have failed to find a significant relationship between schooling and economic growth.
There are still many prevalent problems surrounding the high school curriculum. This can be seen with
many teachers still struggling with students’ retention on subjects being taught, as well as students having
difficulty with test taking. A focal point with the matter is the subjects themselves that are taught, as both teachers
and students complain about how many of the school subjects do not object towards practical skill sets needed
towards real life. In several countries, students are taught subjects related to vocation, career, finances, and even
investment. A main reason as to why these countries suffer less from economic distress, as well as having more
successful outputs for students, is because financial education is well implemented into the high school curriculum.
The purpose for this paper is to show case studies of various countries showing success due to financial education
taught in schools, and to therefore prove the point that financial education is needed all around for the youth.
Philippines now faces a big challenge with regards to the labor force. The ASEAN Economic Community was made to integrate the economies of the member-countries. The Philippines before was behind academically because of the curriculum used. To address the problem, the Philippines uses the K-12 Program which is an international standard and what the other members of ASEAN use. So, it is important to know what jobs are indemand so that the students will take the course for the specific job. This study is aimed to know the in-demand jobs of the Southeast Asian nations and to help the Filipinos what’s the best career path they should take for a bigger chance of getting employed in 2017. This study is only limited not beyond the year 2017. This study will help job-seekers to what jobs they have the best chance being employed. by Glenn L. Velmonte 2020. Job that fits for graduates in the Asean integration. International Journal on Integrated Education. 3, 7 (Jul. 2020), 9-25. DOI:https://doi.org/10.31149/ijie.v3i7.457. https://journals.researchparks.org/index.php/IJIE/article/view/457/436 https://journals.researchparks.org/index.php/IJIE/article/view/457
This paper investigates the behavior of teaching community towards saving and
investment in Mekele, Tigray, Ethiopia. Hence, a teacher's competency determines the
quality of education affected by numer
associated with saving, consumption, and investment. First
from sample respondents of collages, high school and elementary school teacher's
community with cross-sectional data type placed
technique applied to select sample respondents
distributed 95 percent filled correctly. The finding contraindicates Children
education; medication, entertainment, and marriage respective
motives for saving and investment. Besides, Inflation, low
insufficient income were the main reason for an inability to save. Teachers consult
before saving and investment decision with investment consultants and family
members, on the other hand; public image of sources of investment, an initial amount
of investment, potential risk, potential return, and liquidation was the factors
influencing teacher's community on deciding to invest. Likewise, based on the
hypothesis test of chi-square;
status, family size, peer influence, self
specialization were associated positively with saving and investment of teacher's
community. The Ethiopia
community on different aspects like providing incentives for strengthening and
competence in improving quality of education. Similarly, enhancing the mobilization
of savings and also making an adjustment on
way to improve their income.
An analysis of financing of elementary education in India [www.writekraft.com]WriteKraft Dissertations
Writekraft Research and Publications LLP was initially formed, informally, in 2006 by a group of scholars to help fellow students. Gradually, with several dissertations, thesis and assignments receiving acclaim and a good grade, Writekraft was officially founded in 2011 Since its establishment, Writekraft Research & Publications LLP is Guiding and Mentoring PhD Scholars.
Our Mission:
To provide breakthrough research works to our clients through Perseverant efforts towards creativity and innovation”.
Vision:
Writekraft endeavours to be the leading global research and publications company that will fulfil all research needs of our clients. We will achieve this vision through:
Analyzing every customer's aims, objectives and purpose of research
Using advanced and latest tools and technique of research and analysis
Coordinating and including their own ideas and knowledge
Providing the desired inferences and results of the research
In the past decade, we have successfully assisted students from various universities in India and globally. We at Writekraft Research & Publications LLP head office in Kanpur, India are most trusted and professional Research, Writing, Guidance and Publication Service Provider for PhD. Our services meet all your PhD Admissions, Thesis Preparation and Research Paper Publication needs with highest regards for the quality you prefer.
Our Achievements:
NATIONAL AWARD FOR BEST RESEARCH PROJECT (By Hon. President APJ Abdul Kalam)
GOLD MEDAL FOR RESEARCH ON DISABILITY (By Disabled’s Club of India)
NOMINATED FOR BEST MSME AWARDS 2017
5 STAR RATING ON GOOGLE
We have PhD experts from reputed institutions/ organizations like Indian Institute of Technology (IIT), Indian Institute of Management (IIM) and many more apex education institutions in India. Our works are tailored and drafted as per your requirements and are totally unique.
From past years our core advisory members, research team assisted research scholars from various universities from all corners of world.
Subjects/Areas We Cover:
Management, Commerce, Finance, Marketing, Psychology, Education, Sociology, Mass communications, English Literature, English Language, Law, History, Computer Science & Engineering, Electronics & Communication Engineering, Mechanical Engineering, Civil Engineering, Electrical Engineering, Pharmacy & Healthcare.
An analysis of financing of elementary education in India [www.writekraft.com]WriteKraft Dissertations
Writekraft Research and Publications LLP was initially formed, informally, in 2006 by a group of scholars to help fellow students. Gradually, with several dissertations, thesis and assignments receiving acclaim and a good grade, Writekraft was officially founded in 2011 Since its establishment, Writekraft Research & Publications LLP is Guiding and Mentoring PhD Scholars.
Our Mission:
To provide breakthrough research works to our clients through Perseverant efforts towards creativity and innovation”.
Vision:
Writekraft endeavours to be the leading global research and publications company that will fulfil all research needs of our clients. We will achieve this vision through:
Analyzing every customer's aims, objectives and purpose of research
Using advanced and latest tools and technique of research and analysis
Coordinating and including their own ideas and knowledge
Providing the desired inferences and results of the research
In the past decade, we have successfully assisted students from various universities in India and globally. We at Writekraft Research & Publications LLP head office in Kanpur, India are most trusted and professional Research, Writing, Guidance and Publication Service Provider for PhD. Our services meet all your PhD Admissions, Thesis Preparation and Research Paper Publication needs with highest regards for the quality you prefer.
Our Achievements:
NATIONAL AWARD FOR BEST RESEARCH PROJECT (By Hon. President APJ Abdul Kalam)
GOLD MEDAL FOR RESEARCH ON DISABILITY (By Disabled’s Club of India)
NOMINATED FOR BEST MSME AWARDS 2017
5 STAR RATING ON GOOGLE
We have PhD experts from reputed institutions/ organizations like Indian Institute of Technology (IIT), Indian Institute of Management (IIM) and many more apex education institutions in India. Our works are tailored and drafted as per your requirements and are totally unique.
From past years our core advisory members, research team assisted research scholars from various universities from all corners of world.
Subjects/Areas We Cover:
Management, Commerce, Finance, Marketing, Psychology, Education, Sociology, Mass communications, English Literature, English Language, Law, History, Computer Science & Engineering, Electronics & Communication Engineering, Mechanical Engineering, Civil Engineering, Electrical Engineering, Pharmacy & Healthcare.
An analysis of financing of elementary education in India [www.writekraft.com]WriteKraft Dissertations
Writekraft Research and Publications LLP was initially formed, informally, in 2006 by a group of scholars to help fellow students. Gradually, with several dissertations, thesis and assignments receiving acclaim and a good grade, Writekraft was officially founded in 2011 Since its establishment, Writekraft Research & Publications LLP is Guiding and Mentoring PhD Scholars.
Our Mission:
To provide breakthrough research works to our clients through Perseverant efforts towards creativity and innovation”.
Vision:
Writekraft endeavours to be the leading global research and publications company that will fulfil all research needs of our clients. We will achieve this vision through:
Analyzing every customer's aims, objectives and purpose of research
Using advanced and latest tools and technique of research and analysis
Coordinating and including their own ideas and knowledge
Providing the desired inferences and results of the research
In the past decade, we have successfully assisted students from various universities in India and globally. We at Writekraft Research & Publications LLP head office in Kanpur, India are most trusted and professional Research, Writing, Guidance and Publication Service Provider for PhD. Our services meet all your PhD Admissions, Thesis Preparation and Research Paper Publication needs with highest regards for the quality you prefer.
Our Achievements:
NATIONAL AWARD FOR BEST RESEARCH PROJECT (By Hon. President APJ Abdul Kalam)
GOLD MEDAL FOR RESEARCH ON DISABILITY (By Disabled’s Club of India)
NOMINATED FOR BEST MSME AWARDS 2017
5 STAR RATING ON GOOGLE
We have PhD experts from reputed institutions/ organizations like Indian Institute of Technology (IIT), Indian Institute of Management (IIM) and many more apex education institutions in India. Our works are tailored and drafted as per your requirements and are totally unique.
From past years our core advisory members, research team assisted research scholars from various universities from all corners of world.
Subjects/Areas We Cover:
Management, Commerce, Finance, Marketing, Psychology, Education, Sociology, Mass communications, English Literature, English Language, Law, History, Computer Science & Engineering, Electronics & Communication Engineering, Mechanical Engineering, Civil Engineering, Electrical Engineering, Pharmacy & Healthcare.
Quality assurance in Vietnam’s higher education: Insights into past and prese...SubmissionResearchpa
Vietnam higher education has attempted innovations in increased efforts to integrate well into the world’s education. One of the most prominent innovative activities is quality assurance. Adopting a historical approach, this paper presents the Vietnam higher education quality assurance renovating process including three phases: the centrally planned economy period (1954–1986), the reform period (1986–2000) and the international integration period (2000–2017). At each stage, it is referred to the perspective, the system, the mechanism, and the achievements of Vietnam higher education quality assurance. By taking a historical stance, the paper presented the continued advance of higher education management, the role and significance of quality assurance as an integration commitment of Vietnam education in the context of globalization by Nguyễn Văn Hiệp, 2020. Quality assurance in Vietnam’s higher education: Insights into past and present challenges. International Journal on Integrated Education. 3, 8 (Aug. 2020), 98-106. DOI:https://doi.org/10.31149/ijie.v3i8.541 https://journals.researchparks.org/index.php/IJIE/article/view/541/517 https://journals.researchparks.org/index.php/IJIE/article/view/541
Arising from the questions “Would all types of human capital affect economic growth identically? And which type of schooling - primary, secondary, or tertiary – should public policy promote?”, this study examines the nexus between different educational levels and Indonesia’s economic growth over a reference period 1984-2014. During this period, education expansion took place at all three levels of education reflecting structural changes tied within the policies under the Millennium Development Goals (MDG’s) as the key and powerful factor for sustainable economic development. The study applies the augmented Lucas endogenous growth model and employs the autoregressive distributed lag model. The empirical analysis reveals a long-run relation between education and economic growth. The estimated long-run and short-run elasticity of different education levels reveal that, overall, human capital structure in Indonesia is still at the stage of promoting economic growth and identifies tertiary education as the main level for development. The findings reveal that education level matters to economic growth. Further, the empirical evidence helps shed light on why empirical studies have failed to find a significant relationship between schooling and economic growth.
There are still many prevalent problems surrounding the high school curriculum. This can be seen with
many teachers still struggling with students’ retention on subjects being taught, as well as students having
difficulty with test taking. A focal point with the matter is the subjects themselves that are taught, as both teachers
and students complain about how many of the school subjects do not object towards practical skill sets needed
towards real life. In several countries, students are taught subjects related to vocation, career, finances, and even
investment. A main reason as to why these countries suffer less from economic distress, as well as having more
successful outputs for students, is because financial education is well implemented into the high school curriculum.
The purpose for this paper is to show case studies of various countries showing success due to financial education
taught in schools, and to therefore prove the point that financial education is needed all around for the youth.
Philippines now faces a big challenge with regards to the labor force. The ASEAN Economic Community was made to integrate the economies of the member-countries. The Philippines before was behind academically because of the curriculum used. To address the problem, the Philippines uses the K-12 Program which is an international standard and what the other members of ASEAN use. So, it is important to know what jobs are indemand so that the students will take the course for the specific job. This study is aimed to know the in-demand jobs of the Southeast Asian nations and to help the Filipinos what’s the best career path they should take for a bigger chance of getting employed in 2017. This study is only limited not beyond the year 2017. This study will help job-seekers to what jobs they have the best chance being employed. by Glenn L. Velmonte 2020. Job that fits for graduates in the Asean integration. International Journal on Integrated Education. 3, 7 (Jul. 2020), 9-25. DOI:https://doi.org/10.31149/ijie.v3i7.457. https://journals.researchparks.org/index.php/IJIE/article/view/457/436 https://journals.researchparks.org/index.php/IJIE/article/view/457
This paper investigates the behavior of teaching community towards saving and
investment in Mekele, Tigray, Ethiopia. Hence, a teacher's competency determines the
quality of education affected by numer
associated with saving, consumption, and investment. First
from sample respondents of collages, high school and elementary school teacher's
community with cross-sectional data type placed
technique applied to select sample respondents
distributed 95 percent filled correctly. The finding contraindicates Children
education; medication, entertainment, and marriage respective
motives for saving and investment. Besides, Inflation, low
insufficient income were the main reason for an inability to save. Teachers consult
before saving and investment decision with investment consultants and family
members, on the other hand; public image of sources of investment, an initial amount
of investment, potential risk, potential return, and liquidation was the factors
influencing teacher's community on deciding to invest. Likewise, based on the
hypothesis test of chi-square;
status, family size, peer influence, self
specialization were associated positively with saving and investment of teacher's
community. The Ethiopia
community on different aspects like providing incentives for strengthening and
competence in improving quality of education. Similarly, enhancing the mobilization
of savings and also making an adjustment on
way to improve their income.
An analysis of financing of elementary education in India [www.writekraft.com]WriteKraft Dissertations
Writekraft Research and Publications LLP was initially formed, informally, in 2006 by a group of scholars to help fellow students. Gradually, with several dissertations, thesis and assignments receiving acclaim and a good grade, Writekraft was officially founded in 2011 Since its establishment, Writekraft Research & Publications LLP is Guiding and Mentoring PhD Scholars.
Our Mission:
To provide breakthrough research works to our clients through Perseverant efforts towards creativity and innovation”.
Vision:
Writekraft endeavours to be the leading global research and publications company that will fulfil all research needs of our clients. We will achieve this vision through:
Analyzing every customer's aims, objectives and purpose of research
Using advanced and latest tools and technique of research and analysis
Coordinating and including their own ideas and knowledge
Providing the desired inferences and results of the research
In the past decade, we have successfully assisted students from various universities in India and globally. We at Writekraft Research & Publications LLP head office in Kanpur, India are most trusted and professional Research, Writing, Guidance and Publication Service Provider for PhD. Our services meet all your PhD Admissions, Thesis Preparation and Research Paper Publication needs with highest regards for the quality you prefer.
Our Achievements:
NATIONAL AWARD FOR BEST RESEARCH PROJECT (By Hon. President APJ Abdul Kalam)
GOLD MEDAL FOR RESEARCH ON DISABILITY (By Disabled’s Club of India)
NOMINATED FOR BEST MSME AWARDS 2017
5 STAR RATING ON GOOGLE
We have PhD experts from reputed institutions/ organizations like Indian Institute of Technology (IIT), Indian Institute of Management (IIM) and many more apex education institutions in India. Our works are tailored and drafted as per your requirements and are totally unique.
From past years our core advisory members, research team assisted research scholars from various universities from all corners of world.
Subjects/Areas We Cover:
Management, Commerce, Finance, Marketing, Psychology, Education, Sociology, Mass communications, English Literature, English Language, Law, History, Computer Science & Engineering, Electronics & Communication Engineering, Mechanical Engineering, Civil Engineering, Electrical Engineering, Pharmacy & Healthcare.
An analysis of financing of elementary education in India [www.writekraft.com]WriteKraft Dissertations
Writekraft Research and Publications LLP was initially formed, informally, in 2006 by a group of scholars to help fellow students. Gradually, with several dissertations, thesis and assignments receiving acclaim and a good grade, Writekraft was officially founded in 2011 Since its establishment, Writekraft Research & Publications LLP is Guiding and Mentoring PhD Scholars.
Our Mission:
To provide breakthrough research works to our clients through Perseverant efforts towards creativity and innovation”.
Vision:
Writekraft endeavours to be the leading global research and publications company that will fulfil all research needs of our clients. We will achieve this vision through:
Analyzing every customer's aims, objectives and purpose of research
Using advanced and latest tools and technique of research and analysis
Coordinating and including their own ideas and knowledge
Providing the desired inferences and results of the research
In the past decade, we have successfully assisted students from various universities in India and globally. We at Writekraft Research & Publications LLP head office in Kanpur, India are most trusted and professional Research, Writing, Guidance and Publication Service Provider for PhD. Our services meet all your PhD Admissions, Thesis Preparation and Research Paper Publication needs with highest regards for the quality you prefer.
Our Achievements:
NATIONAL AWARD FOR BEST RESEARCH PROJECT (By Hon. President APJ Abdul Kalam)
GOLD MEDAL FOR RESEARCH ON DISABILITY (By Disabled’s Club of India)
NOMINATED FOR BEST MSME AWARDS 2017
5 STAR RATING ON GOOGLE
We have PhD experts from reputed institutions/ organizations like Indian Institute of Technology (IIT), Indian Institute of Management (IIM) and many more apex education institutions in India. Our works are tailored and drafted as per your requirements and are totally unique.
From past years our core advisory members, research team assisted research scholars from various universities from all corners of world.
Subjects/Areas We Cover:
Management, Commerce, Finance, Marketing, Psychology, Education, Sociology, Mass communications, English Literature, English Language, Law, History, Computer Science & Engineering, Electronics & Communication Engineering, Mechanical Engineering, Civil Engineering, Electrical Engineering, Pharmacy & Healthcare.
An analysis of financing of elementary education in India [www.writekraft.com]WriteKraft Dissertations
Writekraft Research and Publications LLP was initially formed, informally, in 2006 by a group of scholars to help fellow students. Gradually, with several dissertations, thesis and assignments receiving acclaim and a good grade, Writekraft was officially founded in 2011 Since its establishment, Writekraft Research & Publications LLP is Guiding and Mentoring PhD Scholars.
Our Mission:
To provide breakthrough research works to our clients through Perseverant efforts towards creativity and innovation”.
Vision:
Writekraft endeavours to be the leading global research and publications company that will fulfil all research needs of our clients. We will achieve this vision through:
Analyzing every customer's aims, objectives and purpose of research
Using advanced and latest tools and technique of research and analysis
Coordinating and including their own ideas and knowledge
Providing the desired inferences and results of the research
In the past decade, we have successfully assisted students from various universities in India and globally. We at Writekraft Research & Publications LLP head office in Kanpur, India are most trusted and professional Research, Writing, Guidance and Publication Service Provider for PhD. Our services meet all your PhD Admissions, Thesis Preparation and Research Paper Publication needs with highest regards for the quality you prefer.
Our Achievements:
NATIONAL AWARD FOR BEST RESEARCH PROJECT (By Hon. President APJ Abdul Kalam)
GOLD MEDAL FOR RESEARCH ON DISABILITY (By Disabled’s Club of India)
NOMINATED FOR BEST MSME AWARDS 2017
5 STAR RATING ON GOOGLE
We have PhD experts from reputed institutions/ organizations like Indian Institute of Technology (IIT), Indian Institute of Management (IIM) and many more apex education institutions in India. Our works are tailored and drafted as per your requirements and are totally unique.
From past years our core advisory members, research team assisted research scholars from various universities from all corners of world.
Subjects/Areas We Cover:
Management, Commerce, Finance, Marketing, Psychology, Education, Sociology, Mass communications, English Literature, English Language, Law, History, Computer Science & Engineering, Electronics & Communication Engineering, Mechanical Engineering, Civil Engineering, Electrical Engineering, Pharmacy & Healthcare.
Quality assurance in Vietnam’s higher education: Insights into past and prese...SubmissionResearchpa
Vietnam higher education has attempted innovations in increased efforts to integrate well into the world’s education. One of the most prominent innovative activities is quality assurance. Adopting a historical approach, this paper presents the Vietnam higher education quality assurance renovating process including three phases: the centrally planned economy period (1954–1986), the reform period (1986–2000) and the international integration period (2000–2017). At each stage, it is referred to the perspective, the system, the mechanism, and the achievements of Vietnam higher education quality assurance. By taking a historical stance, the paper presented the continued advance of higher education management, the role and significance of quality assurance as an integration commitment of Vietnam education in the context of globalization by Nguyễn Văn Hiệp, 2020. Quality assurance in Vietnam’s higher education: Insights into past and present challenges. International Journal on Integrated Education. 3, 8 (Aug. 2020), 98-106. DOI:https://doi.org/10.31149/ijie.v3i8.541 https://journals.researchparks.org/index.php/IJIE/article/view/541/517 https://journals.researchparks.org/index.php/IJIE/article/view/541
Title: Sense of Taste
Presenter: Dr. Faiza, Assistant Professor of Physiology
Qualifications:
MBBS (Best Graduate, AIMC Lahore)
FCPS Physiology
ICMT, CHPE, DHPE (STMU)
MPH (GC University, Faisalabad)
MBA (Virtual University of Pakistan)
Learning Objectives:
Describe the structure and function of taste buds.
Describe the relationship between the taste threshold and taste index of common substances.
Explain the chemical basis and signal transduction of taste perception for each type of primary taste sensation.
Recognize different abnormalities of taste perception and their causes.
Key Topics:
Significance of Taste Sensation:
Differentiation between pleasant and harmful food
Influence on behavior
Selection of food based on metabolic needs
Receptors of Taste:
Taste buds on the tongue
Influence of sense of smell, texture of food, and pain stimulation (e.g., by pepper)
Primary and Secondary Taste Sensations:
Primary taste sensations: Sweet, Sour, Salty, Bitter, Umami
Chemical basis and signal transduction mechanisms for each taste
Taste Threshold and Index:
Taste threshold values for Sweet (sucrose), Salty (NaCl), Sour (HCl), and Bitter (Quinine)
Taste index relationship: Inversely proportional to taste threshold
Taste Blindness:
Inability to taste certain substances, particularly thiourea compounds
Example: Phenylthiocarbamide
Structure and Function of Taste Buds:
Composition: Epithelial cells, Sustentacular/Supporting cells, Taste cells, Basal cells
Features: Taste pores, Taste hairs/microvilli, and Taste nerve fibers
Location of Taste Buds:
Found in papillae of the tongue (Fungiform, Circumvallate, Foliate)
Also present on the palate, tonsillar pillars, epiglottis, and proximal esophagus
Mechanism of Taste Stimulation:
Interaction of taste substances with receptors on microvilli
Signal transduction pathways for Umami, Sweet, Bitter, Sour, and Salty tastes
Taste Sensitivity and Adaptation:
Decrease in sensitivity with age
Rapid adaptation of taste sensation
Role of Saliva in Taste:
Dissolution of tastants to reach receptors
Washing away the stimulus
Taste Preferences and Aversions:
Mechanisms behind taste preference and aversion
Influence of receptors and neural pathways
Impact of Sensory Nerve Damage:
Degeneration of taste buds if the sensory nerve fiber is cut
Abnormalities of Taste Detection:
Conditions: Ageusia, Hypogeusia, Dysgeusia (parageusia)
Causes: Nerve damage, neurological disorders, infections, poor oral hygiene, adverse drug effects, deficiencies, aging, tobacco use, altered neurotransmitter levels
Neurotransmitters and Taste Threshold:
Effects of serotonin (5-HT) and norepinephrine (NE) on taste sensitivity
Supertasters:
25% of the population with heightened sensitivity to taste, especially bitterness
Increased number of fungiform papillae
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Title: Sense of Smell
Presenter: Dr. Faiza, Assistant Professor of Physiology
Qualifications:
MBBS (Best Graduate, AIMC Lahore)
FCPS Physiology
ICMT, CHPE, DHPE (STMU)
MPH (GC University, Faisalabad)
MBA (Virtual University of Pakistan)
Learning Objectives:
Describe the primary categories of smells and the concept of odor blindness.
Explain the structure and location of the olfactory membrane and mucosa, including the types and roles of cells involved in olfaction.
Describe the pathway and mechanisms of olfactory signal transmission from the olfactory receptors to the brain.
Illustrate the biochemical cascade triggered by odorant binding to olfactory receptors, including the role of G-proteins and second messengers in generating an action potential.
Identify different types of olfactory disorders such as anosmia, hyposmia, hyperosmia, and dysosmia, including their potential causes.
Key Topics:
Olfactory Genes:
3% of the human genome accounts for olfactory genes.
400 genes for odorant receptors.
Olfactory Membrane:
Located in the superior part of the nasal cavity.
Medially: Folds downward along the superior septum.
Laterally: Folds over the superior turbinate and upper surface of the middle turbinate.
Total surface area: 5-10 square centimeters.
Olfactory Mucosa:
Olfactory Cells: Bipolar nerve cells derived from the CNS (100 million), with 4-25 olfactory cilia per cell.
Sustentacular Cells: Produce mucus and maintain ionic and molecular environment.
Basal Cells: Replace worn-out olfactory cells with an average lifespan of 1-2 months.
Bowman’s Gland: Secretes mucus.
Stimulation of Olfactory Cells:
Odorant dissolves in mucus and attaches to receptors on olfactory cilia.
Involves a cascade effect through G-proteins and second messengers, leading to depolarization and action potential generation in the olfactory nerve.
Quality of a Good Odorant:
Small (3-20 Carbon atoms), volatile, water-soluble, and lipid-soluble.
Facilitated by odorant-binding proteins in mucus.
Membrane Potential and Action Potential:
Resting membrane potential: -55mV.
Action potential frequency in the olfactory nerve increases with odorant strength.
Adaptation Towards the Sense of Smell:
Rapid adaptation within the first second, with further slow adaptation.
Psychological adaptation greater than receptor adaptation, involving feedback inhibition from the central nervous system.
Primary Sensations of Smell:
Camphoraceous, Musky, Floral, Pepperminty, Ethereal, Pungent, Putrid.
Odor Detection Threshold:
Examples: Hydrogen sulfide (0.0005 ppm), Methyl-mercaptan (0.002 ppm).
Some toxic substances are odorless at lethal concentrations.
Characteristics of Smell:
Odor blindness for single substances due to lack of appropriate receptor protein.
Behavioral and emotional influences of smell.
Transmission of Olfactory Signals:
From olfactory cells to glomeruli in the olfactory bulb, involving lateral inhibition.
Primitive, less old, and new olfactory systems with different path
Flu Vaccine Alert in Bangalore Karnatakaaddon Scans
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This year, the flu season is expected to coincide with a potential increase in other respiratory illnesses. The Karnataka Health Department has launched an awareness campaign highlighting the significance of flu vaccinations. They have set up multiple vaccination centers across Bangalore, making it convenient for residents to receive their shots.
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Microteaching is a unique model of practice teaching. It is a viable instrument for the. desired change in the teaching behavior or the behavior potential which, in specified types of real. classroom situations, tends to facilitate the achievement of specified types of objectives.
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These lecture slides, by Dr Sidra Arshad, offer a quick overview of physiological basis of a normal electrocardiogram.
Learning objectives:
1. Define an electrocardiogram (ECG) and electrocardiography
2. Describe how dipoles generated by the heart produce the waveforms of the ECG
3. Describe the components of a normal electrocardiogram of a typical bipolar leads (limb II)
4. Differentiate between intervals and segments
5. Enlist some common indications for obtaining an ECG
Study Resources:
1. Chapter 11, Guyton and Hall Textbook of Medical Physiology, 14th edition
2. Chapter 9, Human Physiology - From Cells to Systems, Lauralee Sherwood, 9th edition
3. Chapter 29, Ganong’s Review of Medical Physiology, 26th edition
4. Electrocardiogram, StatPearls - https://www.ncbi.nlm.nih.gov/books/NBK549803/
5. ECG in Medical Practice by ABM Abdullah, 4th edition
6. ECG Basics, http://www.nataliescasebook.com/tag/e-c-g-basics
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Artificial intelligence (AI) refers to the simulation of human intelligence processes by machines, especially computer systems. It encompasses tasks such as learning, reasoning, problem-solving, perception, and language understanding. AI technologies are revolutionizing various fields, from healthcare to finance, by enabling machines to perform tasks that typically require human intelligence.
1. Doan, Tinh
Working Paper
Labour market returns to higher education in Vietnam
Economics Discussion Papers, No. 2011-4
Provided in Cooperation with:
Kiel Institute for the World Economy – Leibniz Center for Research on Global Economic
Challenges
Suggested Citation: Doan, Tinh (2011) : Labour market returns to higher education in Vietnam,
Economics Discussion Papers, No. 2011-4, Kiel Institute for the World Economy (IfW), Kiel
This Version is available at:
http://hdl.handle.net/10419/44950
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3. 1. Introduction
The most challenging task of estimating education treatment effect or return to education is that one
does not have sufficient information about studied subjects. Observationally identical individuals
make different choices; we do not know why some people decide to take the four-year university
education, while some do not so that difference in their earnings may be affected by observed,
unobservable attributes and education participation (treatment). To estimate return to the four-year
university education, one should measure how much people would have earned if they did not have
the four-year university degree (Heckman & Li, 2004). One is unable to measure the later earnings
(counterfactual earnings).
The ordinary least squares (OLS) does not account for the factors affecting the four-year
university schooling decision, and especially investment in education in Vietnam is faced with
liquidity constraints (Glewwe & Jacoby, 2004; Glewwe & Patrinos, 1999). Furthermore, the four-
year university entry is not free from competition due to the government’s limited number of
students and due to facility and human capacity of education providers (universities); about three
fourths of high school leavers are unable to go to university (about 1.2 million student complete
high school education in 2009).2
Only 2% of the Vietnam population move into higher education in 2009, it is much lower than
regional and international context,3
and only 5% of the population had ever attended university and
post-graduate education (GSO, 2010, p. 8). Given the fact that university candidates have to
complete high schools and take entrance examinations as well as face liquidity constraints, factors
such as individual ability, and family resources and motivation may play important roles in their
pursuing university education. Therefore, entering the four-year university education is agents’
selectivity/competition by both family and students.
Our results show that the return to the four-year university education in Vietnam in 2008 is,
on annually average, 17% based on IV model and 17.8% based on the OLS and Treatment Effect
models. Thus, the bias by OLS model is not too large to be concerned in the context of higher
education in Vietnam. The return to university education has remarkably improved after more than
twenty years of economic transition. Given the fact that the return to education in Vietnam was very
low in early 1990s (Glewwe & Patrios, 1999; Moock, Patrios, & Venkataraman, 2003), labour
2
See at http://www.business-in-asia.com/vietnam/education_system_in_vietnam.html; and
http://www.gso.gov.vn/default_en.aspx?tabid=474&idmid=3&ItemID=10220
3
See at http://www.business-in-asia.com/vietnam/education_system_in_vietnam
4. 3
market in Vietnam has begun to function more effectively, so higher-qualified labourers have been
rewarded more than in the past.
This paper is structured as follows. Section 2 reviews literature on estimating methods for
return to education. Section 3 presents empirical models and data. Section 4 discusses estimation
results. Concluding remarks are presented in Section 5.
2. Literature review
To estimate the returns to schooling, the Mincerian earnings equation is the first point to begin, the
model is as follows:
Log yi = Si + Xi + ui (1)
When using the ordinary least squares (OLS) to estimate one assumes that S is uncorrelated
with the unobserved disturbance ui of equation (1), but this may not be true. Estimated may be
biased since individual’s ability and motivation affect both earnings and education (Ashenfelter,
Harmon, & Oosterbeek, 1999). More-able and higher-motivated individuals will stay at school
longer and also earn more. Therefore, there is a debate about endogeneity of schooling decision
which is not independent of other factors affecting earnings such as unobserved individual ability
and motivation (Griliches, 1977). The measured correlation between education and earnings may
not be a truly causal effect relationship. A part of earnings would result from ability that also affects
education. This draws researchers’ attention to overcoming this problem by employing IV method,
twin and sibling data, and fixed effect model (Angrist & Krueger, 1991; Staiger & Stock, 1997;
Card, 1995; Ashenfelter & Rouse, 1998; Miller et al, 1995; Ashenfelter & Zimmerman, 1997;
Butcher & Case, 1994; Hausman & Taylor, 1981).
The main point of attention is that education is not randomly assigned to individuals, and their
choices are heavily reliant on many factors such as their ability, motivation and family background
(Card, 1995). Card (1995, 1999, and 2001) suggests careful rethinking of factors influencing
schooling decision. Education attainment may be endogenous, and hence earnings equation is
postulated as follows:
Log yi = Si + Xi + ui (2a)
Si = Zi + vi (2b)
where Xi is a set of controlling variables such as experience, gender, region, race, and economic
sector of individual i. Apart from an individual’s attributes such as age, gender, ethnicity, and
5. 4
region, the existing literature often makes use of family background, proximity to school, quarter of
birth, and composition of siblings as schooling determinants (Zi).
The OLS estimation for equation (2a) can only give a consistent estimate of if ui and vi are
uncorrelated. There are many reasons why the unobserved determinants of education (ui) and
unobserved determinants of earnings or earnings residual (vi) are correlated. For instance,
individual ability may affect both an individual’s education and earnings. The correlation between
two disturbance terms causes ability biases in estimates of returns to schooling.
To deal with the endogeneity of education attainment and ability bias by the OLS estimator,
one may take advantages of exogenous determinants of schooling decision (IV method) or compare
earnings between genetically identical twins or highly genetic siblings conditional on their
education attainment (within-family fixed effect) or utilize panel data. Specifically, there are four
main approaches to deal with ability bias (see Belzil, 2007; Card, 2001, Griliches, 1977 for
extensive surveys of the literature): First, employing some indicators to proxy for unmeasured
ability e.g. IQ and other test scores. Because earning is positively influenced by ability so OLS
estimator often provides upward-biased estimates of return to education. That is, not all of income
comes from education, but a part is due to individual ability. However, ability is also affected by
education, thus adding the ability proxies not only captures the effect of ability but also bias
estimated returns downward (Ashenfelter, et al 1999, p. 3).
Second, using data of siblings or twins, who share the same family background and peer
influences, to eliminate omitted ability bias by estimating return to schooling from difference in
education attainment between siblings or twins (Ashenfelter & Zimmerman, 1997; Miller et al,
1998, Ashenfelter & Rouse, 1998, Isacsson, 1999). This strategy uses observations from the same
family (twins or siblings who often have similar ability and also share the same family economic
conditions) to difference out the correlation between ui and vi (or ability). After eliminating ability
bias, the difference in earnings between siblings or twins will be attributed to difference in
education among them but not due to ability. It is worth noting that, as discussed in the first
approach, ability and schooling mutually affect one another, hence this approach may not provide
less biased than OLS (Ashenfelter, Harmon, & Oosterbeek, 1999). Furthermore, measuring
education may suffer measurement errors, level of measurement error will increase by forming
differences between siblings or twins, this leads to downward biased estimates when using within-
twin (or sibling) estimations (Ashenfelter, et al., 1999, p. 4).
6. 5
The third approach is to exploit factors affecting schooling decision so as to provide
instruments for schooling that are not correlated with error term of the wage equation (2a). One has
to find a set of variables that affect education attainment but not earnings, this approach is called
instrumental variable (IV) method. Instruments should be determinants of schooling decision, but
uncorrelated with earnings residual (error term). The purpose of this method is to eliminate the
differences in individual attributes between treatment group (who received more education) and
control group (who received less education). Instrumental variable approach will provide a
consistent estimate of the return to education (Ashenfelter, et al., 1999, p. 5). IV method first
estimates effect of instrumental variables (Z) on schooling (S), then estimates the effect of the
schooling (S) on earnings (y). By this procedure, the instruments affect earnings only through
schooling. However, if Zi are also correlated with earnings residual, the estimates will be biased
(Angrist, Imbems, & Rubin, 1996; Staiger & Stock, 1997), especially if Zi are weakly correlated
with schooling Si (treatment participation) and positively correlated with earnings, the estimates
would be highly upward biased (Murray, 2006; Stock, 2010; Stock & Yogo, 2002). The lower the
correlation between the instruments and treatment participation, the more sensitive the IV estimate
is to violations of the exclusion restriction assumption (Angrist, Imbems, & Rubin, 1996, p. 451).
Another approach to overcome the ability bias is to use panel data or repeated observations
over time to difference out the correlation between ui and vi (or ability bias). This approach exploits
the variation in education and earnings over time to eliminate ability bias. This approach was
initiated by Hausman and Taylor (1981), and currently applied by Arcand, d’Homebres and
Gyselinck (2004), Chatelain and Ralf (2010) and others. The error term (uit) of equation (2a) can be
decomposed into two parts: time-invariant component (i) that differs across individuals and
individual fixed effect (it) that is independent of both time and individuals. The panel data enable
to cancel out the unobserved individual effects, ability, (i). Thus, the rate of return to
education (can be consistently estimated by the fixed effect estimator.
Fixed effect (FE) estimates return to education based on panel data for a subsample of
individuals who are both working and studying over the same period. However, this approach
receives several critiques. Card (1995, 1999) argues that the subsample is more likely to include
individuals from poorer family background since they begin to work with low levels of education.
They may pursue either full-time studying and part-time jobs or part-time studying (e.g. evening
classes) and full-time jobs at a time. They lack the funds in either case to concentrate on only
studying. Moreover, the model requires variation in education over time, that is, an individual has
7. 6
not finished schooling while they are working. This leads to another argument that the individual
has a part-time or “dead-end” job, while they are studying (Card, 1994, p. 7). Additionally, these
people may recognize the higher returns to schooling and decide to attain more education. Thus,
one may expect that estimated return to education based on the fixed effect model is higher than the
OLS estimate based on the entire sample, and so the FE estimate may not be representative of the
return to education for the entire sample.
In Vietnam, on the other hand, people often have full-time job and participate in part-time
classes (called “in-service training”) that are often considered “very low-quality training” or
diploma mill, especially higher education levels.4
Applying fixed effect estimator may provide
lower estimated return to schooling for the four-year university education than the corresponding
OLS. Another limitation of fixed effect estimator is that measurement error in schooling is likely to
be higher than cross-sectional estimator (Ashenfelter & Zimmerman, 1997; Belzil, 2007).
Additionally, FE estimates are notoriously susceptible to attenuation bias from measurement error
since measurement error often changes year to year, and often increases year to year (Angrist &
Pischke, 2009). Therefore, there is more measurement error in differenced regressors of FE
equation than in regressors in cross section equations.
Which is the best estimator? Comparing between alternative estimators
In IV model, the population is divided into subgroups (g) who share the same values for
unobserved ability. Suppose an intervention that leads to a change (∆Sg) in mean schooling of
group g, and let g is the marginal return to education of group g when there is no intervention.
Suppose the intervention affects only treatment group who are identical to those in comparison
group, that is, they have the same unobserved ability would have the same schooling and earnings
in the absence of the intervention.5
plimiv = E[logyi | Zi = 1]–E[logyi | Zi= 0]/E[Si | Zi = 1] –E[Si | Zi= 0]=E[g∆Sg]/E[∆Sg] (3)
If plimbiv = E[g∆Sg]/E[∆Sg] = E[g].[∆Sg]/E[∆Sg] = (average marginal return to education), that is,
g = or identical marginal return to education for all groups. However, if there exists
heterogeneity in the distribution of marginal returns to school, the IV estimate based on the
intervention that affects only some groups of the population will be higher or lower the
4
see at http://thethao.tuoitre.vn/Hau-truong/415555/He-tai-chuc-da-bi-bien-tuong.html;
http://www.congluan.vn/Item/VN/Thoisu/-Kem-chat-luong-do-bi-tha-noi/581E79E19ECDC140/).
5
Suppose both groups have the same budget conditions.
8. 7
corresponding OLS estimate for the same sample population. Therefore, the IV estimator in this
case is referred to a Local Average Treatment Effect (LATE) since it estimates the return for
subgroups who are affected by the intervention (instrument Zi) (Imbens & Angrist, 1994). As a
result, the difference between OLS and IV estimates may be attributed to difference in sample (the
population vs. subgroup). The validity of IV estimator relies heavily on an assumption that the Zi
are uncorrelated with other unobserved attributes of individuals that affects earnings, that is, cov(Zi,
ui)=0. In the case of experiment of Zi (random assignment of the treatment), the difference in mean
earnings between treatment and control groups will not be exacerbated by IV estimator, but this is
not the case of quasi or natural experiments (Card, 1999, p. 1821). This problem is the limitation of
IV estimator in estimating the returns to schooling. The IV estimates in the presence of weak
instruments that are weakly correlated with schooling but have possible correlation with the
residual of the earnings equation, the estimates may be very imprecise and seriously inconsistent
(Belzil, 2007). Thus, weak IV test is needed to ensure that IV estimation does not provide imprecise
estimates of return to education.
Difference in marginal return to education may be used to explain the difference between
OLS and IV estimates. Heterogeneity of treatment effects on sub-samples can be the reason; an
intervention that affects individuals with lower level of education can lead to higher IV estimates of
the return to schooling relative to the OLS estimates (Card, 1994, p. 20). Therefore, programs that
help improve education of children from poorer family background will tend to have higher
marginal returns. Using the tuition rates and college proximity as instruments for schooling, Kane
and Rouse (1993) confirm this fact.
Griliches (1977) believes that OLS estimates of education returns are unbiased or even
downward biased. Similarly, according to Card (1994, 1999), the IV method yields larger estimates
than the OLS. The IV studies claimed that OLS understates the returns by simply comparing wages
between more and less educated workers. The difference between IV estimates and the OLS
depends on the extent that instruments affect schooling decision at various levels of education due
to heterogeneous returns to schooling (Card, 1999, p. 3). For example, IV estimates based on
instruments which influence schooling decisions of children from relatively disadvantaged family
background (e.g. lower parental education, income, assets) tend to be higher than the OLS
estimates. In a circumstance that schooling decisions are restrained by family budget and schooling
is not free of charge, instruments such as parental education and income primarily influence
schooling decisions. In Vietnam, investment in education, especially higher education where there
9. 8
are higher costs, is constrained by household budget (Glewwe & Jacoby, 2004), so this is a good
reason to believe that IV estimates may be then higher than OLS estimates for higher education
since family background may strongly affect children’s education attainment.
Card (1994, 1999) claims that OLS estimates of the return to education are likely to be biased
downward relative to IV estimates that account for the unobserved determinants of education and
earnings. Many studies reveal this typical feature. For example, Angrist and Krueger (1991) use
quarter of birth as an instrument and find that IV estimate is 28% above the corresponding OLS
estimate. Angrist and Krueger (1992) use the lottery numbers assigned as an instrument and find
that IV estimate is 10% higher than the corresponding OLS estimate; Kane and Rouse (1993)
utilize distance to colleges and tuition rates as instruments and show that IV estimate of the return
to education is about 13-50% higher than the OLS estimates. Even Butcher and Case (1994) find
that IV estimate is much higher than the OLS estimate (100% above the OLS) when using the
presence of sisters in family as an instrument for women’s schooling.
Card (1994, 1999) assumes that attenuation bias in OLS estimates of the return to education is
10-15%, hence IV estimates should exceed the corresponding OLS estimates about 10-15%, and all
of the empirical studies in his survey show that the IV estimates are at least 10% above the
corresponding OLS estimates. Therefore, one can conclude that cross-sectional OLS estimates of
the return to schooling are biased downward relative to IV estimates which control for endogeneity
of education. Furthermore, the differences in estimates of the return to education by alternative
estimators may be due to measurement error in schooling (Card, 1994, p. 24). The measurement
error may lead to a 10% downward bias in the OLS estimates since the OLS is based on potentially
noisy measure of schooling (Card, 1994). However, Ashenfelter et al (1999) caution that the
precision may be lost when moving away from the OLS estimator because the estimates based on
IV estimator have larger standard errors.
IV estimator is often claimed to be able to provide less prone to mis-specification than FE
estimator (Belzil, 2007; Keane, 2010). Additionally, FE estimates are often lower than both the
OLS and IV estimates; this may be caused by higher measurement error from schooling measures
in panel data (Belzil, 2007) since the fixed effect is highly sensitive to measurement error in
schooling (Ashenfelter & Zimmerman, 1997). In summary, IV is preferred to the OLS and FE
estimators when estimating returns to education, but one should bear in mind that IV estimates may
be representative for sub-samples which provide a local average treatment effect (Imbens & Angrist,
10. 9
1994) and precision of the estimates may be lost if the standard errors are significantly larger in
comparison with that of the OLS (Ashenfelter et al, 1999).
3. Empirical models and data
Cross-sectional correlation between schooling and earnings may not reflect the true causal effect of
education on earnings. One of the typical solutions to the problem of causal inference is to apply IV
method as discussed in the previous section. What one needs to do is to search for instruments that
affect only schooling choices but not earnings. In reality, there are two groups of IVs that belong to
either supply side or demand side of schooling decision. On the supply side, many studies make use
of institutional sources of schooling variation such as minimum school leaving age (Harmon &
Walker, 1995), proximity to school (Card, 1995; Kane & Rouse, 1993). On the demand side,
variables such as quarter of birth (Angrist & Krueger, 1991; Staiger & Stock, 1997), and family
background such as parental education, year of birth, brother’s education, sibling composition
(Ashenfelter & Zimmerman, 1997; Butcher & Case, 1994; Card, 1995, 1999; Conneely & Uusitalo,
1997; Staiger & Stock, 1997). Hogan and Rigobon (2010) use both sides to exploit the
heterogeneity in education attainment caused by differences between regions resulting from
different population density, variation in the proximity to school, parental income, and income
distribution, demographics, school quality, and weather etc across regions.
In our case, we look at return to the four-year university education (university graduates)
using demand side factors (family background) such as parental education, assets and share of the
university and post-graduated members in family as instruments. Family information such as
parental education is often utilized to either directly control for unmeasured ability or as an
instrument for children’s schooling (Ashenfelter & Zimmerman, 1997; Card, 1995; Conneely &
Uusitalo, 1997; Heckman & Li, 2004; Griliches, 1979). This is because children’s education is
highly correlated with their parents’ characteristics especially education and economic conditions
(income and assets). Card (1999, p. 1822) indicates that the correlation coefficient of parental
education and children’s education is about 0.4, and about 30% of the variation in US adults’
education is explained by parental education. Further, we utilize household assets and parental
education to proxy for permanent household income (Musgrove, 1979) which is believed to be
correlated with children’s education since investment in education in Vietnam is not free of charge
(Glewwe & Jacoby, 2004; Glewwe & Patrinos, 1999).
11. 10
Models of family background controls in return to education estimation can be set up as
follows:
OLS model: Log yi = + Si + Xi + i +i (4)
IV model: Log yi = + i + Xi + ui and Si = i + vi (5)
where Ziui are independent or cov(Zi, ui)=0, and cov(Zi, Si) ≠0 or E[Zi, Si] ≠0. S in a 0/1 variable
equal to one if an individual has a bachelor’s degree (the four-year university graduate) and 0 if an
individual has a high school diploma. We rule out post-graduate degree holders, three-year-college
and vocational-diploma holders, and below-high-school educated individuals. Xi is a set of
controlling variables such as experience, experience squared, gender, ethnicity, urban, economic
sectors, and eight geographical regions in Vietnam. The estimated coefficient in equation 4 and 5
reflects a percentage difference in earnings between individuals with a bachelor’s degree and high-
school graduation degree. This coefficient is referred as the four-year university premium. Zi is a set
of family background such as mother’s education, father’s education, share of the four-year
university and post-graduated members in family, and household assets (durable, fixed assets and
houses) which was acquired at least one year prior to the survey.6
Family background (Zi), which may be correlated with individual ability and motivation, can
also be used to check the robustness of estimates by OLS estimator (Yakusheva, 2010). Even
though family background variables may not be legitimate instruments for education, controlling
for these variables may reduce the bias in estimated return to schooling (Card, 1999). In a review of
many studies that controlled for family background, ethnicity, region and age which explain up to
about 0.30 of the variance of observed schooling, Card (1994) shows that expected attenuation of
the education coefficient (reduction in estimated coefficient) could be as high as 15%, this is almost
as of the attenuation bias by measurement error in measured schooling. Thus, controlling for these
variables also is as important as correcting for measurement error in reported education.
The most difficult task of evaluation of treatment effect is that we do not have sufficient
information about subjects, people look alike but they make different choices. One does not know
why people decide to take the four-year university education conditional on observed characteristics.
The difference in outcomes would be affected by observed, unobserved attributes and the treatment.
To measure how much they earn or return to the four-year university education, one should measure
how much they would have earned if they did not have the four-year university degree (Heckman &
6
This is to avoid the reversal causality effect of current earnings on the assets
12. 11
Li, 2004). One is unable to measure the later earnings (counterfactual earnings). The conventional
methods of estimating return to education do not account for the factors affecting the four-year
university schooling decision, and especially investment in education in Vietnam is faced with
liquidity constraints (Glewwe & Jacoby, 2004; Glewwe & Patrinos, 1999). Furthermore, the four-
year university entry is not free of competition due to the government limit of quantity and facility
and human capacity of education providers (universities). About one fourth of 1.2 million high
school leavers are able to go to university in 2009.7&8
Therefore, entering the four-year university
education is a selectivity process.
Given the fact that to enter universities, candidates have to complete high schools and take
entrance examinations, factors such as individual ability, and family resources and parental
motivation play important roles in entering university education. These factors can be reflected
through family background since individuals are more likely to have similar innate ability and
family background than randomly selected (Ashenfelter & Zimmerman, 1997). On the supply side
of the four-year university education, some studies use proximity to college as an instrument to
predict schooling in Vietnam (e.g. Arcand, d’Hombres, & Gyselinck, 2004). We do not use this
information since the data of distance to schools from each household measured in the current
studied survey do not properly reflect the distance to school when surveyed individuals were at ages
for the four-year university entry given the fact that there is a high rate of migration in Vietnam
since the economic reform and almost wage-earners often reside in highly migrated regions
(International Organization of Migration;9
GSO, 2010).
Data used in this study come from Vietnam Household Living Standards Survey conducted by
the Vietnam General Statistics Office in 2008 (VHLSS, 2008). The survey interviewed 9,186
households that consist of about 40,000 members covering all provinces and regions of Vietnam.
The survey is representative for national level of Vietnam. From this data, we obtain 651
individuals who have either high school degree or the four-year university degree to estimate return
to the four-year university education.
7
see at http://www.business-in-asia.com/vietnam/education_system_in_vietnam.html; and
http://www.gso.gov.vn/default_en.aspx?tabid=474&idmid=3&ItemID=10220
8
Each year, the Vietnamese government allocates a certain quota of student intakes for each university depending on
their facility and staff capacity.
9
http://www.iom.int.vn/joomla/index.php
13. 12
4. Estimation results
In this section we in sequence estimate OLS with basic controls, then with further controls of family
background such as father’s education, mother’s education, share of university and post-graduated
members in family, and household assets in logarithm. After that IV model estimation and IV tests
will be conducted. Finally, Treatment Effect model estimation will be run to corroborate the IV
estimates.
Unconditional wage gap between the four-year university wage-earners and high school
graduated wage-earners is very large, about double (Table 1). The university graduates are more
likely to work in state sector but less likely to work in private sector. They also have better family
background such as parental education, assets, and have more siblings at university and post-
graduated education levels. They are observed to be more in major ethnicity (Kinh and Chinese)
and living in urban areas. The university graduated wage-earners are about 3 years older but have
about one year of experience less than the high school graduated wage-earners (Table 1). These
differences suggest either controlling for the family background variables in the OLS wage equation
or using them as instruments for schooling. Additionally, when adding these variables, in sequence,
into the Probit model to predict the likelihood of taking university education, we observe significant
effects of these variables, that is, they meet the “relevant” condition, that is, cov(Zi, S)≠0 (see Table
2). But when all the family background variables are added together into the model, father and
mother’s education turn out to be insignificant due to their highly correlation with the share of
university and post-graduated members in family (the last column of Table 2). This also suggests
utilizing either of them as an IV at a time.
14. 13
Table 1: Summary statistics
Variables High school
graduates (n=360)
The four-year
university
graduates (n=291)
t-value for
equal mean
Mean Std. error Mean Std. error
Hourly wage (VND 1,000) 9.146 0.478 17.571 0.696 9.98**
Log of hourly wage 1.956 0.036 2.685 0.036 14.36**
Worked in state sector 0.222 0.022 0.704 0.027 13.93**
Worked in foreign sector 0.114 0.017 0.082 0.016 1.35
Worked in private sector 0.664 0.025 0.213 0.024 13.02**
Age (year) 26.706 0.288 29.793 0.368 6.61**
Experience (year) 8.706 0.288 7.801 0.367 1.94+
Gender (male=1) 0.597 0.026 0.550 0.029 1.21
Majority (Kinh & Chinese=1) 0.922 0.014 0.979 0.008 3.48**
Urban (yes=1) 0.339 0.025 0.718 0.026 10.43**
Region 1-Red River 0.286 0.024 0.268 0.026 0.51
Region 2-North East 0.097 0.016 0.107 0.018 0.39
Region 3-North West 0.039 0.010 0.014 0.007 2.05*
Region 4-North Central 0.050 0.012 0.058 0.014 0.47
Region 5-South Central 0.114 0.017 0.117 0.019 0.12
Region 6-Central Highlands 0.025 0.008 0.027 0.010 0.20
Region 7-South East 0.217 0.022 0.271 0.026 1.61
Region 8-Mekong Delta 0.172 0.020 0.137 0.020 1.22
Instruments
Mother’s education (year) 5.778 0.236 9.646 0.327 9.59**
Father’s education (year) 6.331 0.264 9.405 0.385 6.58**
Share of university and post-graduated
members
0.017 0.004 0.432 0.013 30.58**
Log total assets acquired before 2007 12.599 0.063 13.606 0.062 11.32**
Notes: t-value statistically significant at 10% (+), 5% (*), and 1%
15. 14
Table 2: Probability of going to university
Variables (1) (2) (3) (4) (5) (6)
Age 0.1131 0.1113 0.0660 0.1303 0.1152 0.0736
(3.27)** (3.10)** (1.55) (3.63)** (3.41)** (1.71)+
Age squared -0.0014 -0.0012 -0.0008 -0.0015 -0.0015 -0.0010
(2.67)** (2.26)* (1.31) (2.83)** (2.84)** (1.57)
Gender (male=1) -0.0093 -0.0095 0.0732 -0.0405 -0.0227 0.0465
(0.18) (0.18) (0.93) (0.77) (0.44) (0.57)
Majority 0.1888 0.1837 0.0892 0.1908 0.0644 0.0045
(1.41) (1.31) (0.73) (1.51) (0.46) (0.04)
Urban 0.3422 0.2436 -0.0026 0.3064 0.1904 -0.0749
(6.87)** (4.39)** (0.03) (5.79)** (3.18)** (1.00)
Mother’s education 0.0465 -0.0152
(8.43)** (1.59)
Share of university 4.0215 4.1493
and post-graduated members (7.03)** (7.37)**
Father’s education 0.0296 0.0096
(6.63)** (0.87)
Log total assets 0.1880 0.1116
(6.18)** (2.68)**
Region dummies controlled Yes Yes Yes Yes Yes Yes
Wald 2
104.77 146.01 73.20 131.52 145.85 114.09
Prob > 2
0.0000 0.0000 0.0000 0.0000 0.0000 0.0000
Pseudo R2
0.1582 0.2624 0.7290 0.2208 0.2274 0.7426
Observations 651 651 651 651 651 651
Robust z statistics in parentheses; + significant at 10%; * significant at 5%; ** significant at 1%
OLS estimates
Estimates of return to education using OLS estimator show that university graduated wage-earners
earn 71% higher than the high school wage-earners, equivalent to 17.8% per year (Table 3). When
the family background is further controlled for, the return slightly declines. Interestingly, only
father’s education and household assets have direct effects on individual earnings, while mother’s
education and the share of university and post-graduated members in family have do not have such
effects on earnings. This sheds some light on the validity of mother’s education, father’s education,
the share of university and post-graduated members in family, and assets when used as IVs. We will
come back to the test of IV validity later.
16. 15
Table 3: Return to schooling using OLS with and without family background controls
Variables (1) (2) (3) (4) (5) (6)
University education 0.7134 0.6954 0.7116 0.6927 0.6561 0.6738
(11.11)** (10.65)** (8.21)** (10.72)** (10.39)** (7.96)**
Experience 0.0490 0.0500 0.0490 0.0550 0.0495 0.0535
(4.11)** (4.21)** (4.12)** (4.66)** (4.27)** (4.71)**
Experience squared -0.0012 -0.0012 -0.0012 -0.0013 -0.0012 -0.0013
(2.99)** (2.94)** (2.98)** (3.25)** (3.16)** (3.35)**
Gender 0.2386 0.2379 0.2387 0.2264 0.2274 0.2189
(4.37)** (4.35)** (4.38)** (4.15)** (4.32)** (4.12)**
Majority 0.5764 0.5743 0.5764 0.5784 0.4941 0.5013
(2.44)* (2.40)* (2.43)* (2.46)* (2.05)* (2.09)*
Urban 0.0935 0.0816 0.0932 0.0813 -0.0139 -0.0114
(1.79)+ (1.56) (1.77)+ (1.57) (0.24) (0.20)
State sector 0.1351 0.1320 0.1350 0.1252 0.0846 0.0817
(2.00)* (1.93)+ (1.99)* (1.85)+ (1.31) (1.25)
Foreign sector 0.3243 0.3162 0.3243 0.3143 0.2846 0.2791
(3.78)** (3.56)** (3.78)** (3.67)** (3.42)** (3.26)**
Mother’s education 0.0061 0.0010
(1.06) (0.15)
Share of university and post-
graduated members
0.0050 -0.0843
(0.03) (0.54)
Father’s education 0.0113 0.0078
(2.47)* (1.67)+
Log total assets 0.1242 0.1155
(4.51)** (4.20)**
Constant 0.6217 0.5832 0.6219 0.5018 -0.8156 -0.8080
(3.05)** (2.88)** (3.04)** (2.44)* (2.14)* (2.16)*
Region dummies controlled Yes Yes Yes Yes Yes Yes
Observations 651 651 651 651 651 651
R-squared 0.48 0.48 0.48 0.49 0.50 0.50
F-value 30.73 29.23 29.88 30.24 30.22 27.24
Prob>F 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000
Robust t statistics in parentheses; + significant at 10%; * significant at 5%; ** significant at 1%
Note: private sector is set as a comparison base group for state and foreign sector
IV estimates
We utilized the Maximum Likelihood IV estimation (a jointly estimation procedure) and the
estimates of return to education are presented in Table 4. Before presenting the results, we discuss
the IV tests. The test results are presented in the bottom panel of Table 4. We emphasize the tests
for the exclusion restriction or overidentification assumption and weak identification.
17. 16
Table 4: Return to schooling using IV estimator with various sets of excluded instruments
(LIML estimation)
Variables (1) (2) (3) (4) (5) (6) (7)
University 1.0661 0.6819 2.0061 1.9510 1.5469 0.7250 0.6780
education (4.10)** (9.16)** (3.25)** (5.27)** (5.95)** (9.41)** (9.09)**
Experience 0.0693 0.0495 0.1179 0.1150 0.0942 0.0517 0.0493
(year) (3.89)** (4.24)** (2.99)** (4.28)** (4.59)** (4.38)** (4.22)**
Experience -0.0017 -0.0012 -0.0032 -0.0031 -0.0025 -0.0012 -0.0012
Square (2.87)** (2.82)** (2.39)* (3.25)** (3.32)** (2.93)** (2.80)**
Constant 0.6951 0.7337 0.6006 0.6061 0.6467 0.7293 0.7341
(3.45)** (3.97)** (2.24)* (2.34)* (2.82)** (3.92)** (3.98)**
F-value 22.09 30.83 13.05 12.68 17.69 30.65 30.64
Prob > F 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000
Uncentered R2
0.94 0.95 0.90 0.90 0.92 0.95 0.95
Root MSE 0.5841 0.5598 0.7731 0.7585 0.6626 0.5606 0.5598
Observations 651 651 651 651 651 651 651
Excluded
instruments
Mother’s
education
Share of
university
and post-
graduated
members
Father’s
education
Log total
assets
Mother’s
education
& log
total
assets
Share of
university
and post-
graduated
members
& log total
assets
Share of
university
and post-
graduated
members
&
mother’s
education
Test for instruments
jointly equal zero in
the first stage, F-
value [P-value in
bracket]
29.08
[0.0000]
355.80
[0.0000]
9.97
[0.0017]
26.07
[0.0000]
22.64
[0.0000]
196.01
[0.0000]
178.19
[0.0000]
Partial R2
of
excluded
instruments
0.0475 0.4837 0.0171 0.038 0.0722 0.4889 0.4843
Weak identification
test (Kleibergen-
Paap Wald rk F
statistic) [Stock-
Yogo weak id test
critical value at
10% maximal
LIML size in
bracket]
29.08
[16.38]
355.80
[16.38]
9.97
[16.38]
26.07
[16.38]
22.64
[8.68]
196.01
[8.68]
178.19
[8.68]
Hansen J statistic
(overid test) [P-
value in bracket]
Just-
identified
Just-
identified
Just-
identified
Just-
identified
4.696
[0.0302]
21.735
[0.0000]
2.731
[0.0984]
Endogeity test of
university
education (P-val)
0.0742 0.3719 0.0019 0.0000 0.0000 0.2032 0.4240
Robust z statistics in parentheses; + significant at 10%; * significant at 5%; ** significant at 1%. All the
models controlled for gender, ethnicity, urban, economic sectors, and 8 geographical regions in Vietnam.
18. 17
First, we consider models with only one instrument at a time in columns 1, 2, 3 and 4 of Table
4. The weak identification test accepts the hypothesis that the father’s education variable is a weak
instrument since the Kleibergen-Paap rank F statistic (9.97) is much smaller than the Stock-Yogo’s
weak identification critical value at 10% maximal LIML size. Furthermore, the F-statistic on the
excluded instrument in the first stage is smaller than 10. This casts doubt on the validity of the
father’s education as an instrument, and suggests that this instrument is weak. The point estimates
are very biased and seriously inconsistent, thus, it is unable to predict the magnitude of the effects
accurately when applying father’s education as an instrument in IV models. In column 6, the
Hansen test for exclusion restriction or over-identification rejects the validity of a combination of
two instruments (the share of university and post-graduated members in family and total household
assets). This implies there is at least one instrument in this combination is invalid, while in column
7 of Table 4 the combination of two instruments (the share of university and post-graduated
members in family and mother’s education) is accepted. This means at least one instrument is in the
combination exogenous (Wooldridge, 2002).
Further, the endogeneity test in the last row of Table 4 indicates that the hypothesis of
endogeneity of university education is rejected when father’s education, assets, and a combination
of mother and assets are used as instruments. The weak identification test statistic in column 2,
which strongly rejects the hypothesis of weak instrument of the share of university and post-
graduated members, and the p-value of Hansen test (column 7) is not high enough to eliminate the
suspicion of a strong instrument of mother’s education since power of the test is low in the presence
of weak instruments, so adding a weak instrument may result in accepting the null hypothesis of
overidentification just by increasing degrees of freedom (Baum, Schaffer, & Stillman, 2003). From
these test results, we may infer that instruments of father’s education and the household asset are
invalid instruments, while mother’s education is a valid but not very strong instrument, and the
share of university and post-graduated members is a good instrument. This finding is contrast to
Arcand, d'Hombres and Gyselinck (2004) who used a combination of father’s and mother’s
education (parental education) as an instrument in a study of return to education in Vietnam for
period 1992-1998. Mixing father’s education and mother’s education together may not properly
reveal whose education plays an important role in schooling choices and IV modelling.
To choose which model in either column 2 or 7 of Table 4, we look at F statistic on the
excluded instrument in the first stage, the F value (355.8) for the model with one variable of the
share of university and post-graduated members in family doubles that (178.2) of the model with
19. 18
two instruments in column 7. Additionally, one should choose model among valid instruments
which has a minimum mean-square error (MSE) (Donald & Newey, 2001). Furthermore, all the
estimated coefficients, their standard errors, partial R2
of excluded instruments, and MSE of these
two model specifications are almost the same. This suggests that we can use either the models in
columns 2 and 7 of Table 4.
Estimated return to university education varies largely. Using a weak instrument of father’s
education or an invalid instrument of log total household assets yields very highly upward biased
results (columns 3 and 4, Table 4). Because father’s education and assets are both correlated with
schooling Si (treatment participation) and positively correlated with earnings (see Tables 2 & 3), the
estimates are highly upward biased (Angrist, Imbems, & Rubin, 1996; Murray, 2006; Staiger &
Stock, 1997; Stock, 2010; Stock & Yogo, 2002). When using a valid instrument of mother’s
education the bias is reduced (comparing to estimates based on weak or invalid instruments), the
return to each year of university education is about 0.27. However, when using either a strong
instrument of the share of university and post-graduated members or a combination of the share of
university and post-graduated members and mother’s education, the return to four-year university
education is 0.68, annualized return is 0.17 (columns 2 & 7). Interestingly, the estimated return
using IV models with valid instruments is almost the same with that based on the OLS model with
family background controls (column 6 of Table 3), even somewhat lower than the OLS estimate
based on the model without family background control (column 1 of Table 3). This implies there is
no a serious ability bias in the OLS estimated return to the university education in Vietnam.
Treatment Effect Model estimates
In the above IV estimation with the joint estimation procedure (treatment participation and outcome
equation), the normal distribution assumption of the first stage dependent variable was ignored even
though it is a binary variable. The joint estimation procedure may be acceptable since the OLS still
remain unbiased (Gurajati, 1995, p. 543). However, the estimates that ignored the assumption may
be woefully inefficient (Nichols, 2009).
Treatment effect model may be an alternative approach to the problem of non-fulfilment of
the normality assumption of binary endogenous variable of university education in the first stage.
The binary endogenous regressor of university education is viewed as a treatment indicator, thus
this estimation is considered as the treatment effect model (Heckman & Li, 2004). Error terms (ui
of main equation, and vi of instrumental equation) are assumed to be correlated, i.e. cov(ui, vi) =
20. 19
Table 5: Return to schooling using Treatment Effect Model with various sets of controlling
variables in selection equations
Controls in wage equation (1) (2) (3)
University education (yes=1) 0.7830 0.7113 0.7030
(3.33)** (9.27)** (9.07)**
Experience (year) 0.0520 0.0489 0.0485
(3.65)** (4.17)** (4.12)**
Experience squared -0.0012 -0.0012 -0.0011
(2.76)** (3.02)** (2.98)**
Gender (male=1) 0.2347 0.2388 0.2392
(4.16)** (4.42)** (4.42)**
Majority (Kinh & Chinese=1) 0.5698 0.5766 0.5774
(2.42)* (2.46)* (2.47)*
Urban (yes=1) 0.0722 0.0941 0.0967
(0.89) (1.80)+ (1.84)+
State sector (yes=1) 0.1018 0.1361 0.1401
(0.77) (1.92)+ (1.98)*
Foreign sector (yes=1) 0.3150 0.3245 0.3257
(3.32)** (3.82)** (3.83)**
Constant 0.6128 0.6220 0.6230
(3.00)** (3.09)** (3.10)**
Region dummies controlled Yes Yes Yes
Controls in selection equation (the first stage)
Variables as of the wage equation Yes Yes Yes
Mother’s education Yes Yes
Share of university and post-graduated members Yes Yes
Wald 2
332.57 434.96 342.01
Prob > 2
0.0000 0.0000 0.0000
Observations 651 651 651
Robust z statistics in parentheses; + significant at 10%; * significant at 5%; ** significant at 1%
Note: private sector is set as a comparison base group for state and foreign sector
where ui ~ NID(0,
and vi ~ N(0,1)This model offers an estimator similar to IV estimator in the
case of a single binary endogenous variable, but it improves efficiency of estimates (Nichols, 2009,
p. 56). For the treatment effect model, the Lambda or inverse Mills’ ratio is estimated in the first
stage and then is included in the second stage to correct for selection bias. The identification is
obtained by including factors (as of the valid instruments in the IV models above) that influence
university education participation but not earnings. The estimates are presented in Table 5. The
estimated return to university education (17.8% and 17.6% per year for model with the share of
university and post-members in family-column 2, and a combination of the share of university and
post-members in family and mother’s education-column 3, respectively) seems to accord with the
estimates based on the previous IV models.
21. 20
5. Concluding remarks
This paper utilizes a recent dataset to estimate the return to post-in Vietnam. We demonstrate that
controlling for proxy for individual ability (family background) in the wage equation slightly
reduces the estimated return to higher education. This trend is also true when mother’s education
and share of university and post-graduated members in family are used as instruments in IV models.
Therefore, OLS estimates are upward-biased, but the bias is not large to be concerned. Additionally,
the paper demonstrates that using invalid or weak instruments, such as father’s education and
household assets, leads to highly imprecise estimates of the return to the four-year university
schooling.
In 2008 income premium for university education in Vietnam is about 68% above the high
school education (on average, 17% per year). The return to higher education reached the average
return of higher education, about 18%, in Asia (Psacharopoulos & Patrinos, 2004). The estimated
return seems to be robust to various estimators of OLS, IV and Treatment Effect. The return to
university education is much higher than that of ten years ago in 1998 (Doan & Gibson, 2009). This
implies that labour market in Vietnam rewards higher-skilled workers more after a longer period of
economic transition to a market economy. This increasing trend is also observed in a compatibly
transitional economy of China (Heckman & Li, 2004). The high premium for university education
may be also attributed to university graduates’ comparative advantage in the Vietnam labour market
where only 5% of the population hold university or post-graduate degrees (GSO, 2010).
22. 21
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