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The Role of Education in Young Household Income in Rural Vietnam

  • NGUYEN, Hai Dang (Faculty of Politics, Vietnam Youth Academy, Hanoi, Vietnam) ;
  • HO, Kim Huong (Faculty of Politics, Vietnam Youth Academy, Hanoi, Vietnam) ;
  • CAN, Thi Thu Huong (Faculty of Economics, Banking Academy of Vietnam, Hanoi, Vietnam)
  • Received : 2020.11.05
  • Accepted : 2021.01.15
  • Published : 2021.02.28

Abstract

The purpose of the research is to evaluate how education influences the income of household heads, who are young adult in rural Vietnam. In order to examine the impact of education on the households where their heads are young adults, in this paper, the authors employ two research methods. First, ordinary least squares (OLS) regression is used to study the impact of education on different groups of income; second, quantile regression is applied to find out how education influences the income of households. The dataset includes a survey of 800 young households aged between18 and 35 who are the head of agricultural farms in rural areas. The findings indicate that education has a positive impact on income of young households. Furthermore, the results prove that the longer schooling years, the higher income youth can attain. The results showed that, at the survey time (Sep 2019), the average monthly income of rural young adults who are joining the production process shows a big gap between low and high incomes. Moreover, the study has revealed that other factors positively affect the incomes, namely, joining job-related associations, land resource, hired labour, hi-tech application as well as extension of producing unit.

Keywords

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