RETURNS TO FORMAL EDUCATION AND VOCATIONAL TRAINING IN SRI LANKA

Author Name: Kopithan, B and Vaikunthan. V

Volume: 01 &  Issue:

Country: SRI LANKA

DOI NO.: 01.2021-14822394 DOI Link: http://doi-ds.org/doilink/01.2021-14822394/UIJIR

Affiliation:

1. Research Officer, Institute of Regional Development & Governance, Sri Lanka
2. Director, Institute of Regional Development & Governance, Sri Lanka

ABSTRACT

The Mincer earnings function is the cornerstone of a large literature in empirical economics. This paper discusses the theoretical foundations of the Mincer model and examines the empirical support for it using data from National Labour Survey 2019. Inferences about trends in rates of return to formal education and vocational training obtained from our more general model differ substantially from inferences drawn from estimates based on a Mincer earnings regression. In this scenario to estimate econometrics model the multiple regression model was applied with the support Stata data analyzing software according statistical results shows that Formal education and Vocational training are high significance to determine the Income. Descriptive statistics was done to study the characteristics of sample population. As per the descriptive statistics the mean value of log hourly income was LKR 6.21. The average years of education, average years of labour market experience and vocational training were 10.09, 2.45 and 2.61 respectively. The regression analysis revealed that there is a positive relationship between income and formal education and vocational training.

Key words: Return, Formal education, Vocational training