Factors Affecting the Return to Education in Jordan
DOI:
https://doi.org/10.35516/jjes.v12i1.2622Keywords:
Return to education, Wage differences, Education and InequalityAbstract
Objectives: The main objective of this paper is to assess the impact of investment in education on the return to education in Jordan.
Methods: This study aimed to assess the effect of the type of education, level of education, and number of years of education as the primary independent variables, in addition to gender, years of experience, and training as control variables, on the earnings of Jordanian workers as the dependent variable. A sample of 190 Jordanian workers was analyzed through an online questionnaire. Since many of the independent variables are qualitative in nature, the Ordinary Least Squares (OLS) method with dummy independent variables was used to estimate the model parameters.
Results: The results of the study show a positive relationship between investment in education and individual wages. In addition, the findings indicate that gender has an impact on wages. Moreover, the results demonstrate that years of experience positively affect wages. However, the impact of training on wages may also be positive.
Conclusions: In light of the results, we recommend that policymakers encourage Jordanians to invest more in education, particularly in higher education. Additionally, policymakers should focus on reducing unemployment and job market saturation by creating special programs to train and rehabilitate unemployed individuals, equipping them with skills relevant to both the local and external labor markets. Government efforts should also be intensified to find new job opportunities abroad by signing agreements with other countries to facilitate the employment of Jordanians in those countries.
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