IDEAS home Printed from https://ideas.repec.org/a/aip/access/v5y2024i3p551-561.html
   My bibliography  Save this article

The impact of human capital investment on the wages among Northern Border University graduates

Author

Listed:
  • Naif Fawzi ALRUWAILI

    (Northern Border University, Saudi Arabia)

Abstract

Objectives: This study explores how investing in human capital through higher education affects wages of graduates of Northern Border University. Methods/Approach: To that end, it estimates the Mincer earnings function, a commonly used method to calculate the economic return of investing in education. The study analyses data collected from a questionnaire completed by 305 individuals who graduated from Northern Border University and are currently employed in the Northern Border region. Results: This study yielded various findings, with the most significant being the enhancement of economic return resulting from investments in education. Additionally, the research findings indicate that the return on investment in higher education for all employees is about 5.6%. Another important finding of the study is that there is a noticeable disparity in wages between the public and private sectors. The Mincer earnings specification indicates that the return on investment in education accounts for 5.9% in the public sector and 4.1% in the private sector. Finally, the return on investment in higher education for employees in the services sector, including education, health, banks, and insurance, is 5.7% and exceeds the 2.8% observed in the trade sector.

Suggested Citation

  • Naif Fawzi ALRUWAILI, 2024. "The impact of human capital investment on the wages among Northern Border University graduates," Access Journal, Access Press Publishing House, vol. 5(3), pages 551-561, July.
  • Handle: RePEc:aip:access:v:5:y:2024:i:3:p:551-561
    DOI: 10.46656/access.2023.5.3(10)
    as

    Download full text from publisher

    File URL: https://journal.access-bg.org/journalfiles/journal/issue-5-3-2024/the_impact_of_human_capital_investment_on_the_wages_among_northern_border_university_graduates.pdf
    Download Restriction: no

    File URL: https://libkey.io/10.46656/access.2023.5.3(10)?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Keywords

    Human Capital; return of education; wage; Saudi Arabia;
    All these keywords.

    JEL classification:

    • C83 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Survey Methods; Sampling Methods
    • H75 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Government: Health, Education, and Welfare
    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aip:access:v:5:y:2024:i:3:p:551-561. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Mariana Petrova (email available below). General contact details of provider: https://access-bg.org/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.