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Educational choice, wage determination, and rates of return to education in Taiwan

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  • Yih-chyi Chuang
  • Chen-Yeng Chao

Abstract

This paper estimates educational choice, wage determination, and the rate of return to education in Taiwan using Taiwan's Manpower Utilization Survey data of 1996. As education investment is a self-selection process, this paper adopts a two-stage estimation method. First, a polychotomous ordered probit model is used to estimate the education decision. Second, the wage equations of different educational attainments are estimated by incorporating the possible selection bias obtained in the probit model. Finally, rates of return on each education level are calculated from the estimation results. Copyright International Atlantic Economic Society 2001

Suggested Citation

  • Yih-chyi Chuang & Chen-Yeng Chao, 2001. "Educational choice, wage determination, and rates of return to education in Taiwan," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 7(4), pages 479-504, November.
    • Handle: RePEc:kap:iaecre:v:7:y:2001:i:4:p:479-504:10.1007/bf02295776
    DOI: 10.1007/BF02295776
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    Cited by:

    1. Cheng Chen & Sabrina Terrizzi & Shin-Yi Chou & Hsien-Ming Lien, 2021. "The effect of sibship size on educational attainment of the first born: evidence from three decennial censuses of Taiwan," Empirical Economics, Springer, vol. 61(4), pages 2173-2204, October.
    2. Yih-chyi Chuang and Wei-wen Lai, 2017. "Returns to Human Capital and Wage Inequality: The Case of Taiwan," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 42(3), pages 61-88, September.

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