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http://dx.doi.org/10.7465/jkdi.2016.27.4.935

The wage determinants of the vocational high school graduates using mixed effects mode  

Ryu, Jangsoo (Division of Economics, Pukyong National University)
Cho, Jangsik (Division of Mathematics and Applied Statistics, Kyungsung University)
Publication Information
Journal of the Korean Data and Information Science Society / v.27, no.4, 2016 , pp. 935-946 More about this Journal
Abstract
In this paper, we analyzed wage determinants of the vocational high school graduates utilizing both individual-level and work region-level variables. We formulate the models in the way wage determination has multi-level structure in the sense that individual wage is influenced by individual-level variables (level-1) and work region-level (level-2) variables. To incorporate dependency between individual wages into the model, we utilize hierarchical linear model (HLM). The major results are as follows. First, it is shown that the HLM model is better than the OLS regression models which do not take level-1 and level-2 variables simultaneously into account. Second, random effects on sex, maester dummy and engineering dummy variables are statistically significant. Third, the fixed effects on business hours and mean wage of regular job for level-2 variables are statistically significant effect individual-level wages. Finally, parental education level, parental income, number of licenses and high school grade are statistically significant for higher individual-level wages.
Keywords
Fixed effects; hierarchical linear model; multiple correspondence analysis; random effects; vocational high school;
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Times Cited By KSCI : 5  (Citation Analysis)
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