A cross-provincial study: The impact of education on income in Vietnam

Investment in schooling has long been recognized as a contributor to higher income per capita. However, improvement in income per capita depends on the types of educational investment. Is expanding schooling or improving the quality of education better for increasing the income level? Using provincial data on Vietnam from 2002 to 2006, OLS regression analysis was used to evaluate the impact of the quantity of schooling (in terms of the number of schools) and the quality of schooling (in terms of the pupil -teacher ratio) on per capita income. The results indicate a negative relationship between per capita income and the number of schools at primary and lower secondary education. At the same time, the pupil-teacher ratios show different impacts on income per capita at different levels of the general education