The Empirical Study on the Returns to Schooling in Taiwan

• Main Authors: Tzu-Ling Kuo, 郭姿伶
• Other Authors: 李鈞元
• Format: Others
• Language: zh-TW
• Online Access: http://ndltd.ncl.edu.tw/handle/65812226839781809387

碩士 === 淡江大學 === 經濟學系碩士班 === 96 === This thesis aims to analyze the schooling''s influence on the individual salary. Many scholars think that omitting the innate ability variable or the family background variable will cause bias in estimation of returns to schooling. In order to highlight the schooling''s direct effect on the individual salary, we attempt to add the family dummy variable to control the innate ability and the family background. The data for this thesis are taken from the “Manpower Utilization Survey” in 1989, in 1998 and in 2007. The empirical results can be summarized as follows: First, both adding the family dummy variable and adding the number of the parent''s education years can improve the overestimated situation of the returns to schooling. However, adding the family dummy variable is a better method because the magnitude of its correction is bigger. Second, Taiwan''s rate of return to schooling has slightly risen during the observed period and it is approximately 4%.