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Return to education in Vietnam during the recent transformation

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  • Tinh Doan
  • John Gibson

Abstract

A common phenomenon about transition economies is that the return to schooling improves as economic reform progresses. Existing evidence suggests that Vietnam is not an exception to the pattern. However, the rate of return for the period 1992 to 1998 is still low relative to that of the world and of other transitional economies. To provide up-to-date estimates of the return and to test whether the return to schooling in Vietnam is rising and reaches other transitional economies' rate of return, we re-examine the return in Vietnam from 1998 until before the current global economic crisis when the reforms have had a longer time to have an effect. We apply the OLS and Heckman selection estimators and find that the return has increased quickly during the later economic reform period but its pace has slowed down when the return reached the global average rate.

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Bibliographic Info

Article provided by Inderscience Enterprises Ltd in its journal Int. J. of Education Economics and Development.

Volume (Year): 3 (2012)
Issue (Month): 4 ()
Pages: 314-329

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Handle: RePEc:ids:ijeded:v:3:y:2012:i:4:p:314-329

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Web page: http://www.inderscience.com/browse/index.php?journalID==346

Related research

Keywords: economic transition; schooling returns; Heckman correction; James Heckman; selection bias; Vietnam; transition economies; economic reforms; transitional economies; OLS; ordinary least squares; linear regression; selection estimators; return rates; education economics; educational development.;

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