The Impact of Educational Attainment on Employment Opportunities and Wages in Jordan
Keywords:
Educational Attainment, Employment, Wages, Experience, Household Wealth, Probit Model, Multiple Linear Regression, Jordan Labor Market, SurveyAbstract
Objectives: This paper investigates the impact of individuals' educational attainment on employment opportunities and wages in Jordan, using microdata from the Jordan Labor Market Panel Survey for 2010 and 2016.
Methods: Using cross-sectional data from the Jordan Labor Market Panel Survey (JLMPS 2010 & 2016), the Probit model was employed to examine employment opportunities, while multiple linear regression was applied to analyze wages. To account for the heterogeneity among sample members, the models used were designed to accommodate this variability.
Results: Educational attainment has a positive impact on both employment and wages; as an individual’s educational level increases, so do their employment probability and monthly wage. Although the effects of educational attainment on employment and wages weakened in 2016 compared to 2010, they remain positive and statistically significant. Employment and wages are also positively correlated with work experience and household wealth, and they vary by gender. Finally, while wages differ across sectors, there is no significant evidence of wage disparities by nationality.
Conclusions: The results raise an important question: do factors such as education, gender, sector, wealth index, nationality, experience, age, place of residence, and parental education fail to fully explain wage disparities in Jordan? What, then, are the most significant determinants of wages in the country? This question calls for more in-depth research and investigation, leaving the door open for further scientific exploration on this topic.
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