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Does Human Capital Matter to Vendor Profitability: Evidence from Taiwan

Author

Listed:
  • Yu-Hsien Tsai

    (Graduate Institute of Industrial Economics, National Central University, Taiwan)

  • Chih-Hai Yang

    (Department of Economics, National Central University, Taiwan)

Abstract

This paper examines the role of human capital on influencing vendor profit. Using a unique vendor survey from Taiwan, we find human capital, measured by owners' education and experience, is positively related to vendor profit. Particularly, education tends to associate an inversed-U relationship with the vendor profit that vendors run by high school educated owners gain a highest profit, on average. The influences of education and experience on profit are similar for both food and non-food vendors, even though their operation skills and knowledge are likely diverse. Other owner characteristics, such as age and gender, also matter to vendor profit.

Suggested Citation

  • Yu-Hsien Tsai & Chih-Hai Yang, 2018. "Does Human Capital Matter to Vendor Profitability: Evidence from Taiwan," Journal of Economics and Management, College of Business, Feng Chia University, Taiwan, vol. 14(1), pages 83-106, February.
    • Handle: RePEc:jec:journl:v:14:y:2018:i:1:p:83-106
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    References listed on IDEAS

    as
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    Cited by:

    1. Gonzales Martinez, Rolando & D’Espallier, Bert & Mersland, Roy, 2021. "Bifurcations in business profitability: An agent-based simulation of homophily in self-financing groups," Journal of Business Research, Elsevier, vol. 129(C), pages 495-514.

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    More about this item

    Keywords

    vendor; human capital; profitability;
    All these keywords.

    JEL classification:

    • J49 - Labor and Demographic Economics - - Particular Labor Markets - - - Other
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance

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