<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>This paper investigates the effect of formal education on individual earnings in Bosnia and Herzegovina (BiH). We use empirical regression analysis and an extended Mincer’s model, which are applied to the Labour Force Survey data from 2018. Our empirical results suggest that a higher level of both statutory and additional education has positive and statistically significant effect on higher earnings of individuals in this post-conflict society. Such a finding implies that investment in education, both statutory and additional, bring economic benefits to individuals, although this is sometimes challenged by the general public of this society. Moreover, we find that employees in the public sector record systematically higher earnings than those in the private sector, suggesting a need for strategic policies targeting this difference. The outcome of our analysis is a good indicator of productivity achieved through improved educational performance, and thus provides scientific evidence to the positive effect of human capital hypothesis in BiH.</p>
</abstract>

This paper investigates the effect of formal education on individual earnings in Bosnia and Herzegovina (BiH). We use empirical regression analysis and an extended Mincer’s model, which are applied to the Labour Force Survey data from 2018. Our empirical results suggest that a higher level of both statutory and additional education has positive and statistically significant effect on higher earnings of individuals in this post-conflict society. Such a finding implies that investment in education, both statutory and additional, bring economic benefits to individuals, although this is sometimes challenged by the general public of this society. Moreover, we find that employees in the public sector record systematically higher earnings than those in the private sector, suggesting a need for strategic policies targeting this difference. The outcome of our analysis is a good indicator of productivity achieved through improved educational performance, and thus provides scientific evidence to the positive effect of human capital hypothesis in BiH.

The Effect of Education on Earnings in a Post-Conflict Economy: Evidence from Bosnia and Herzegovina

Financial Internet Quarterly

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

This paper investigates the effect of formal education on individual earnings in Bosnia and Herzegovina (BiH). We use empirical regression analysis and an...

The Effect of Education on Earnings in a Post-Conflict Economy: Evidence from Bosnia and Herzegovina

Data publikacji: 30 cze 2021

Zakres stron: 1 - 15

Otrzymano: 23 mar 2021

Przyjęty: 19 maj 2021

DOI: https://doi.org/10.2478/fiqf-2021-0008

Słowa kluczowe
education, individual earnings, human capital, Bosnia and Herzegovina

© 2021 Aida Rizvanovic et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

The Effect of Education on Earnings in a Post-Conflict Economy: Evidence from Bosnia and Herzegovina

Data publikacji: 30 cze 2021

Zakres stron: 1 - 15

Otrzymano: 23 mar 2021

Przyjęty: 19 maj 2021

DOI: https://doi.org/10.2478/fiqf-2021-0008

Słowa kluczoweeducation, individual earnings, human capital, Bosnia and Herzegovina

© 2021 Aida Rizvanovic et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Słowa kluczowe
education, individual earnings, human capital, Bosnia and Herzegovina