The impact of human capital on individual income in Vietnam

Abstract

In recent years, studies on the topic of growth often refer to the relationship between human capital and economic growth. This asserts that the importance of human capital is undisputed. With the desire to study the effect of human capital on individual income in Vietnam, the article has used the Mincer earnings function. Research results show that employee’s income is affected by three factors: education expenditure, working time, and education level. However, the study also shows that the correlation between college graduation and higher and income growth is quite low. Through these research results, Vietnam needs to continue to improve its human resource development strategy as well as increase the efficiency of investment in education in the coming years.