The impact of higher education on workers’ income: The moderating role of employment type

This paper investigates the moderating role of employment type in the effect of university education on individuals’ income in Vietnam. The study demonstrates that both education level and employment type significantly affect workers’ income. Workers with a university degree earn approximately 31% more than those with only a high school diploma, while self-employed workers earn about 20% less than wage earners. When combining employment type and education level, wage earners with a university degree earn around 16.7% more than self-employed workers with the same degree. Similarly, wage earners with a university degree in the private sector have, on average, 4.8% higher income than those in the public sector with the same level of education. Furthermore, marital status, gender, and geographic location also influence income, with married individuals, men, and urban workers earning higher incomes. The study recommends policies that encourage education, support private sector development, reduce regional income inequality, and promote gender equality.