Problem Statement
Numerous studies have explored human capital and social capital separately in relation to various status attainments, including economic, educational, and environmental factors, yet often overlook their interplay Some researchers, such as Piazza-Georgi (2002), suggest that human and social capital act as substitutes, while others, including Bruderl and Preisendorfer (1998), contend that they function complementarily.
In Vietnam's evolving market economy, education plays a crucial role in enhancing knowledge and competency, with human capital being essential for increasing wages, productivity, and overall value for individuals, firms, and society (Denison, 1962; Schultz, 1961) A 2004 study by Grayson highlighted the positive impact of human capital on the income of university graduates in Canada As the Vietnamese government attracts multinational companies, the demand for employees with specific human capital skills is rising to meet the competitive business landscape According to the OECD (1998), human capital encompasses the knowledge, skills, competencies, and attributes relevant to economic activity In this study, human capital is defined through English proficiency, computer skills, and communication skills (Santarelli and Hien).
Numerous studies have explored the impact of social capital on various positive outcomes at the individual, household, and firm levels For instance, Yandan Wang's 2008 research utilized the National Education Longitudinal Study to analyze how the university environment fosters social capital, positively influencing job outcomes for graduates Similarly, Nguyen Van Ha's study in 2004 investigated the effects of social capital on household welfare in a paper-recycling craft village in Vietnam, while Ha Anh Tuan examined its impact on individual income in Ho Chi Minh City However, there is a noticeable lack of research that integrates both human capital and social capital to assess their combined effects on individual outcomes.
Research Objective
With the above in mind, I am going to investigate the impact of combination between human capital and social capital on the income of university graduate in
Ho Chi Minh City highlights the significance of social networks formed during the transition from university to the workforce, as emphasized by Yadan Wang (2008) Accumulating human capital through university education plays a crucial role in shaping future income This study conveys important insights for students, educators, and policymakers regarding the impact of social and human capital on financial outcomes.
Research Question
The major relationships investigated in this study are:
Research question 1: Does the investment of individual for the human capital bring the positive relationship to income?
Research question 2: Does the current social capital and cumulative social capital during university period have the positive impact on income of university graduate in Ho Chi Minh City?
Research Methodology
This study analyzes survey data from 252 university graduates in Ho Chi Minh City, utilizing a combination of face-to-face interviews, drop-off surveys, and email questionnaires The research employs the Ordinary Least Squares (OLS) econometric method, ensuring robust standard errors for accurate results.
The proposed model identifies key independent variables, including cumulative social capital acquired during university through extracurricular activities, volunteer work, and social connections It also considers current social capital and home base social capital, which is represented by parental education levels Additionally, human capital is assessed through proficiency in English, communication skills, and computer skills.
This study provides valuable insights for various audiences Firstly, students can utilize its findings to better prepare for their transition into university life Secondly, educators and educational policymakers can leverage this research to design effective programs that enhance students' development of essential human and social capital during their time at university.
LITERATURE REVIEW
Social capital and status attainment theory
Bourdieu (1986) defines social capital as the collective resources derived from a stable network of institutionalized relationships characterized by mutual recognition He emphasizes the importance of social capital within familial, educational, and workplace contexts, suggesting that it transforms casual connections—like those found in neighborhoods or among relatives—into significant, enduring relationships marked by obligations such as gratitude, respect, and friendship (1983).
Social capital encompasses three key forms: obligations and expectations, relational networks, and social trust and norms (Coleman, 1990) It plays a crucial role in helping individuals achieve their goals through social relationships and networks Coleman's 1988 study, which utilized the National Educational Longitudinal Study, explored the connection between social capital and educational achievement He defined social capital as the social relationships that facilitate task completion and goal attainment Ultimately, social capital enhances individual learning and aids in adapting to societal norms.
Social capital, as defined by Putman (2000), encompasses the connections among individuals, including social networks and the norms of reciprocity and trustworthiness that emerge from these relationships Putman identifies two types of social capital: bonding social capital, which pertains to inward relationships within families, friend groups, or ethnic communities, and bridging social capital, which relates to outward relationships among diverse groups.
Research has predominantly examined the influence of human capital on the job attainment process, as status attainment theory posits that educational achievements—such as knowledge and skills—are crucial for gaining a competitive edge in securing better employment opportunities (Becker, 1975; Mincer).
Status attainment theory posits that an individual's educational achievement is significantly influenced by their parents' social status Research by Featherman & Carter (1976) and Jencks (1979) indicates a strong correlation between parental occupations, education levels, and income Consequently, a child's educational attainment subsequently impacts their occupational status and income potential.
Research on the impact of cumulative social capital during university on income is limited However, connections and extracurricular activities formed during this period significantly influence an individual's occupational status Social capital developed in university can lead to job opportunities through networking, potentially shaping one's career path and directly affecting income Conversely, Buerkle and Guseva (2002) argue that the accumulated social capital during university has an independent effect on an individual's income.
Buerkle and Guseva (2002) highlight that social capital acquired during university significantly influences individual income, with its impact varying based on education and experience levels This social capital is particularly valuable for career success as it aligns closely with students' professional interests and aspirations, making the university experience a crucial source of social capital.
In 1999, Lin conducted research to explore the connection between social capital and status attainment The study comprised two key processes: the first examined how individuals access social capital through general social networks, including educational background and prior experiences The second process analyzed the role of social contacts and the resources they provide during job searches, such as network connections, education, and initial job positions These factors are anticipated to influence attained status, including occupational status and earnings.
Human capital and status attainment theory
In today's knowledge economy, individuals and nations alike are striving to enhance and sustain their competitive advantages In Vietnam, personal success is closely tied to the level of competencies individuals possess Ultimately, people are increasingly viewed as valuable assets within the framework of human capital.
Human capital combines two distinct concepts: 'human' and 'capital.' From an economic standpoint, 'human' refers to individuals responsible for various economic activities, including production, consumption, and transactions Meanwhile, 'capital' signifies the resources utilized in the production of goods or services that are not substantially consumed during the production process.
2008) On the creation of these concepts, human capital means one of production elements, which can generate benefits through inputting it
Numerous studies indicate that human capital significantly impacts various positive outcomes, with economists highlighting that investing in human capital leads to higher individual wages compared to other inputs like land, labor, and financial capital (Salamon, 1991) The knowledge and skills gained through individual investment are easily convertible into goods and services (Romer, 1990) As noted by Sleezer, Conti, and Nolan (2003), learning plays a crucial role in acquiring human capital and fostering relationships From a micro perspective, human capital is essential for a firm's competitiveness and comparative advantage (Lepak & Snell, 1999).
According to Dension (1962) and Schultz (1961), human capital significantly influences individual wages, firm productivity, and national economies Schultz emphasized the crucial role of human capital in driving economic growth.
Investing in human capital goes beyond just enhancing productivity; it encompasses various aspects of personal and professional development Engaging in learning activities equips individuals with the skills necessary for effective job searching Once employed, they can efficiently manage their responsibilities, adapt to workplace conditions, and ultimately achieve greater rewards in their current roles and within the labor market.
Human capital encompasses the knowledge and skills that individuals acquire through learning activities It includes essential factors such as skills, knowledge, competencies, and experience that contribute to personal and professional development.
Human capital, viewed from an individual perspective, is considered a valuable asset within the labor force, as highlighted by Schultz (1961) It is intricately connected to knowledge, skills, education, and abilities (Garavan, 2001; Youndt, 2004), and is defined as the "knowledge, competency, attitude, and behavior embedded in an individual" (Rastogi, 2002).
Human capital is viewed as an accumulative process where individuals gain knowledge and skills through various learning activities, including university, college, and vocational education (Alan, 2008) In essence, human capital is developed through both formal education and practical experience.
The production-oriented perspective of human capital emphasizes its role as a critical factor in economic productivity According to Frank and Bernanke (2007), human capital encompasses a range of attributes, including education, experience, training, and work habits, which collectively enhance a worker's value Romer (1990) identifies human capital as a fundamental source of economic productivity, while the OECD (2001) defines it as the knowledge, skills, competencies, and attributes that contribute to personal, social, and economic well-being.
According to the OECD (1998), human capital encompasses the knowledge, skills, competencies, and attributes of individuals that contribute to economic activities In Vietnam's evolving job market, there is a growing demand for university graduates equipped with essential skills, particularly in the knowledge economy Key competencies sought by multinational companies include strong communication, self-management, adaptability, English proficiency, and computer skills, highlighting the importance of these attributes for career success in the region.
Research by Becker (1975) and Mincer (1974) highlights the significance of human capital, knowledge, and skills in the job acquisition process, grounded in the theory of status attainment Featherman & Carter (1976) and Jencks (1979) further emphasize that an individual's job status is influenced by their skills and knowledge, parental education, personal educational attainment, income, and parental occupation.
Since the late 1970s, numerous studies have explored the link between income and language proficiency, primarily focusing on developed countries that serve as destinations for immigrants Chiswick and Miller (1995) contribute to this body of research, highlighting the significance of language skills in enhancing economic outcomes for immigrant populations.
Research by Bellante and Kogut (1998) and Shields and Wheatley Price (2002) highlights the impact of English proficiency on the income of immigrants in the United States and the United Kingdom, respectively Most studies have primarily concentrated on how fluency in the destination language influences the earnings of immigrants.
In developing countries, the diverse native languages often hinder effective business communication, making proficiency in a dominant language, particularly English, essential for economic success This research investigates the correlation between English proficiency and income levels among the indigenous population, highlighting the significance of language skills in enhancing business opportunities and financial outcomes.
Language proficiency is a crucial element of human capital, as highlighted by Chiswick and Miller (1995), as it enhances individual productivity by lowering transaction costs and facilitating effective information exchange Dustmann (1994) and Shields and Wheatley Price (2002) further emphasize that strong language skills enable individuals to negotiate better salaries with employers Most studies focus on the impact of destination language proficiency on immigrants' income, and in this context, my research specifically defines language proficiency as the ability to communicate effectively in English, the predominant language in business.
Measurement of human capital
Human capital measurement can be categorized into three approaches: the income approach, the output approach, and the cost approach The income approach focuses on the wages or benefits individuals gain from investments in education and training The output approach assesses factors like the level of knowledge acquired and years of schooling completed Lastly, the cost approach emphasizes the expenses incurred in obtaining knowledge or certifications.
Income approach is the returns, income or benefit, which an individual obtains from labor market through education investment Mulligan & Sala-i-Martin
(1995) defines that aggregate human capital is the sum of quality adjustment of each individual’s labor force, and presents the stock of human capital utilizing an individual’s income
The output approach to measuring human capital includes indicators such as schooling enrollment rates, educational attainment, and production output Psacharopoulos (1984) emphasized the significance of average years of schooling as a proxy for assessing the stock of human capital Barro (1991) and Barro and Lee (1993) also utilized school enrollment rates to gauge human capital Additionally, Nehru, Swanson, and Dubey (1993) explored the relationship between human capital and the accumulated years of schooling among individuals of employable age, highlighting educational attainment as a key factor.
Cost approach is the accumulated cost to investing for one’s human capital
Jorgenson and Fraumeni (1989) introduce the concept of discounted future income as a method for assessing human capital This approach utilizes indirect measures of human capital stock Additionally, the investment costs associated with individuals are evaluated based on Kendric's 1976 study.
Chiswick and Miller (1995) emphasize that language proficiency is a crucial aspect of human capital In Vietnam's open economy, which attracts numerous multinational companies, English skills are considered vital for university graduates competing in the labor market However, there is a lack of empirical research examining the earnings returns associated with varying levels of English proficiency in Vietnam, as well as its relationship with other educational outcomes and social capital.
Casale and Posel (2010) found a significant return for Africans with strong English skills, specifically in reading and writing, as evidenced by their analysis of the National Income Dynamics Survey (NIDS) conducted in 2008 The survey assessed respondents' proficiency in speaking and writing English alongside their indigenous languages, using a four-point scale: "very well," "fair," "not well," and "not at all."
Computer skills represent a significant aspect of human capital, as evidenced by research conducted by Sakellariou and Patrinos (2004), which found that individuals in Vietnam with computer skills earn 10-14% more than those without Their findings were reinforced in subsequent studies using an instrumental variable approach, where university graduates self-assessed their computer skills on a scale from low to very high Additionally, research by Choi (1993) in Korea indicated that workers with computer skills earned more in industries characterized by rapid technological change compared to those in slower-paced sectors Furthermore, the study by Sakellariou and Patrinos highlighted a positive correlation between educational outcomes and computer skills in Singapore.
Measurement of social capital
Home based social capital Social Economic Status:
The accumulation of social capital occurs when students and parents actively participate in daily educational activities, with parents contributing essential resources that enhance their children's educational development and overall growth.
Socioeconomic status (SES) is a comprehensive measure that reflects an individual's or family's economic and social position, determined by factors such as income, education, and occupation This study highlights the role of parents' education as a vital form of social capital that significantly influences children's educational outcomes and future earnings Parents with higher education levels tend to provide greater support and involvement in their children's educational activities, fostering social capital within the family and enhancing the overall educational experience.
Social capital plays a crucial role in shaping young students' behavior and performance in university, as it offers essential resources for their academic journey According to Coleman (1988), social capital is derived from the relationships between parents and children, highlighting the importance of familial connections in influencing educational outcomes.
Crosnoe (2004) discovered that emotionally distant parent-child relationships negatively impact academic achievement Additionally, research has explored the connection between family social capital and educational attainment Earlier studies indicate a positive correlation between family socioeconomic status and children's educational outcomes.
Social Capital in College Extra-curricular activities:
Extracurricular activities are voluntary engagements beyond the standard school curriculum, primarily focused on athletics, social interactions, and philanthropy rather than academics On university campuses, these activities are crucial for personal development, significantly enhancing the college experience for students Participation in extracurriculars offers more than just enjoyment; it fosters skill acquisition and improvement Engaging in these activities allows students to connect with peers, enhancing their emotional, social, and intellectual growth while preparing them for future career success.
Extracurricular activities provide students with opportunities to meet and interact with peers beyond their immediate friends, fostering the expansion of their social networks and relationships These activities enable effective information exchange and learning outside the classroom Engaging in extracurriculars allows students to connect with individuals from diverse backgrounds, enhancing their social capital and teamwork skills This collaboration ultimately contributes to improved learning outcomes and better job prospects in the future, as noted by Brehm & Rahn (1997).
“web of cooperative relationships between citizens”
Participation in extracurricular activities significantly enhances social networks and relationships within both university settings and local communities, contributing to social capital For instance, joining an English club allows students to improve their language skills while also forming friendships with individuals from diverse backgrounds.
Numerous studies have established a connection between student participation in extracurricular activities and enhanced academic performance Rombokas (1995) explored the impact of extracurricular involvement on college success, revealing a positive correlation with job outcomes Similarly, Guest and Schneider (2003) highlighted the benefits of engaging in activities like sports, while Eccles (2003) emphasized how extracurricular participation influences academic achievement, personality development, and social behavior.
Research indicates that peer relationships significantly influence students' social behavior and academic performance Studies by Nichol & White (2001) highlight the critical role of peer interactions in student development Empirical evidence from Berndt & Keefe (1995) and Wentzel & Caldwell (1997) demonstrates a positive correlation between academic success and friendship Moreover, friendships enhance students' overall engagement in school and their commitment to academic pursuits, as noted by Berndt & Keefe (1995) Additionally, Nichol & White provide supportive evidence for the positive impact of peer groups on academic achievement in subjects like algebra.
Understanding the peer group context is crucial for assessing students' social behavior and academic performance, as highlighted by Nichols and White (2001) Research indicates that strong peer relationships serve as vital social resources, motivating students to engage in positive behaviors During their university years, students spend significant time with peers, making these relationships influential in shaping their behavior and opinions In fact, the impact of peers can often outweigh that of parents, underscoring their critical role in students' lives.
The teacher – student relationship considers as another form of social capital This relationship has the effect to many outcome of student
Teacher-student relationships are influenced by various factors, including student demographics, academic orientations, and behavioral characteristics (Murray and Greenberg, 2000) Research by Birch & Ladd (1997) highlights that individual student traits, behaviors, and academic performance significantly impact these relationships A positive teacher-student relationship fosters a conducive learning environment, encouraging students to engage more actively by asking questions and tackling challenging subjects Moreover, the study indicates that students who receive close attention from their teachers tend to perform better academically, particularly those with underdeveloped social skills who benefit greatly from personal connections with their educators.
Relationship between human capital and social capital
Regarding the relationship between social capital and human capital, Coleman
In 1998, it was highlighted that social capital plays a crucial role in the development of human capital Conversely, some researchers, such as Buerkle and Guseva (2002), suggest that the relationship may be reversed, proposing that social capital can emerge as an unintended consequence of human capital formation.
Numerous studies have examined the impacts of human capital and social capital on various outcomes, often isolating each factor rather than exploring their interplay While some researchers view human and social capital as substitutes, others consider them complementary Individuals often find it challenging to invest in both simultaneously Bruderl and Preisendorfer (1998) suggest that social capital can offset deficiencies in human capital, whereas Piazza-Georgi (2002) argues that investing in human capital may detract from social capital.
Research by Knack and Keefer (1997) indicates that social capital yields greater societal returns compared to human capital Furthermore, Barro and Sala-i-Martin (1995) highlight that the interplay between human capital and social capital is a key factor in driving economic growth.
A 1998 study by Pennings revealed that both human capital and social capital are significant predictors of accounting firm failures in the Netherlands Social capital is illustrated by the connections potential clients have with the firm, while human capital encompasses the firm's industry experience, educational qualifications, and employee tenure.
A study by Davidsson and Honig (2003) reveals that opportunity discovery and exploitation are influenced by both human and social capital Analyzing longitudinal data from Sweden, the research highlights two key findings: first, the success of opportunity exploitation is closely linked to social capital, and second, entrepreneurial discovery is significantly driven by human capital.
Investing in human and social capital significantly enhances a firm's performance, as demonstrated by research from Bosma and Van Praag (2004) This improved performance is reflected in increased profits, higher survival rates, and greater employment generation The study utilizes data gathered from Dutch entrepreneurs to support these findings.
According to Coleman (1988), there exists a complementary relationship between human capital and social capital, where social capital within communities and families can enhance individual human capital development Burt (2001) emphasizes that "social capital is the contextual complement to human capital." Conversely, other researchers, including Bruderl & Preisendorfer (1998) and Piazza-Georgi (2002), argue that human capital and social capital can exhibit a substitution effect.
Introduction
This study investigates the relationships between various factors affecting university graduates, specifically focusing on accumulative social capital, human capital, and job outcomes measured by income Key components of human capital include English proficiency, computer skills, and communication skills Social capital is represented by factors such as socioeconomic status, connections with friends, participation in extracurricular activities, peer relationships, teacher-student relationships, and the overall impact of the university The chapter outlines the research methodology, detailing data sources, sample selection, and the models used in the study It begins with a description of data collection methods and proceeds to explain the instrumentation, measurement models, hypotheses, and testing procedures.
Data collection
Data was collected through a personal network using a structured questionnaire targeting Vietnamese respondents The survey employed three methods: face-to-face interviews (10% of the sample), email surveys (40%), and drop-off surveys (50%) Out of 290 administered questionnaires, 252 met the criteria of being completed within three years of graduation The questionnaire consists of three sections: the first gathers general individual information, the second assesses human capital through questions about English proficiency, computer skills, and communication abilities, while the final section evaluates social capital, focusing on socioeconomic status, social connections, and experiences related to extracurricular activities, peer relationships, and interactions with faculty during university.
The empirical model
This study aims to analyze the causal impact of human capital and social capital on individual income or wages, utilizing survey data as the dependent variable The relationship is estimated using Ordinary Least Squares (OLS) with robust standard errors to ensure accurate results.
Human capital determinants, such as English proficiency, computer skills, and communication skills, significantly influence individual outcomes Researchers warn that using Ordinary Least Squares (OLS) can introduce bias due to unobserved characteristics like ability and motivation, which impact educational attainment and learning outcomes Most empirical studies focus on how different education levels affect wages and income, but they often overlook crucial unobservable factors, leading to potentially misleading results My study aims to explore the relationship between individual learning outcomes and income, positing that a positive correlation exists, assuming that control variables can mitigate the bias associated with endogenous education.
This research tests a simplified general model that enhances our understanding of how social capital and human capital influence income The model suggests that both human capital factors, including English proficiency, computer skills, and communication skills, as well as social capital components—such as socioeconomic status, friendships, and accumulated social capital through university experiences like extracurricular activities and peer relationships—can significantly impact individual income.
Human capital refers to the cumulative process through which individuals acquire knowledge and skills via various learning activities, including university, college, and vocational education (Alan, 2008) Proficiency in English, computer skills, and communication abilities are assessed by asking individuals to rate their competencies on a scale of 1 to 5, where 1 indicates a beginner level and 5 signifies an excellent level in relation to job requirements.
Social capital encompasses home-based resources, friendships, and accumulated social connections developed during university life Key elements include participation in extracurricular activities, the quality of peer relationships, and the interactions between students and teachers Additionally, the overall impact of the university environment plays a significant role in shaping an individual's social capital.
Home-based capital is assessed through socio-economic status (SES), specifically by evaluating the education levels of parents This assessment utilizes the "Year of schooling of parent" as a measure, with responses ranging from 1 to 5 A score of 5 indicates education beyond university level, while scores of 4, 3, 2, and 1 correspond to university, vocational or college, high school, and below high school levels, respectively.
Friend connection is defined by the number of friends an individual believes will provide support during challenging times When faced with difficulties, people often reflect on how many friends they can rely on, with responses typically ranging from one to five or more.
Figure 2: Measurement of Friend connection
Extracurricular activities at university encompass a variety of options, such as sports, music clubs, the green summer volunteer campaign, and English clubs To gauge participation, respondents are asked how often they engaged in these activities, with a scale from 5, indicating "always," to 1, meaning "never."
Figure 3: Measurement of Extra-curricular activity
Peer relationships in university are assessed through key questions that gauge the values of students These include the significance placed on achieving good grades among friends, the importance of participating in sports, and the value of social gatherings with peers Understanding these dynamics can provide insight into the social priorities and influences within the university environment.
Participation in community volunteer work
Friend connection Number of friend
Time for those relationships answer has 5 options ranged from 5 to 1where 5 is very the most important and 1 is not important at all
Figure 4: Measurement of Peer relationship
The teacher-student relationship in universities is assessed through key questions regarding the educational environment These include the level of teachers' interest in students, the fairness of grading practices, and the prevalence of cheating within the institution Understanding these aspects is crucial for evaluating the overall quality of the educational experience.
4) Teachers ignore cheating The answer has five options ranged from 1 meaning not agree at all to 5 indicating strongly agree
Impt to have good grade
Figure 5: Measurement of Teacher student relationship
The influence of university education on job outcomes is assessed through four key variables Respondents were asked to evaluate whether their university experience positively affects their work performance in terms of job quality, salary potential, responsibility levels, and promotion opportunities Participants rated their agreement on a scale from 1 (strongly disagree) to 5 (strongly agree), providing insights into the perceived benefits of higher education in the professional realm.
Teachers are interested in students
There is cheating in college
Figure 6: Measurement of University impact
Job outcome measures are assessed by monthly income, with respondents indicating their earnings from their main job The responses are reverse coded, where a score of 1 represents earnings of less than 4 million VND, 2 indicates earnings between 4 to 5.6 million VND, 3 corresponds to earnings from 5.6 to 7.2 million VND, while scores of 4 and 5 signify earnings from 7.2 to 8.8 million VND and above 8.8 million VND, respectively.
The model developed by Grootaert and his colleagues emphasizes the role of human and social capital as key inputs, with income serving as the model's outcome In my research, I adopt this established framework to analyze the relationship between these variables.
Where Y is income or wage H is human capital S is social capital C is characteristic of individual
From the function (1), it can be made model specification by the regression econometric model with ordinary least square technique
Y = β0 + β1Eng + β2Comp + β3ComSki + β4PareEdu + β5Frie + β6FrieMeet + β7ECA1 + β8ECA2 + β9PeerEdu + β10PeerPopu1 + β11Peerpopu2 + β12TeachStu1 + β13TeachStu2 + β14TeachStu3 + β14TeachStu4 + β15ImpStu1 + β16ImpStu2 + β17ImpStu3 + β18ImpStu4 + ei
Where: Y – Income: Monthly income or wage in VND
ECA – Extra-curricular activity PeerPopu - Peer relationship TeachStu - Teacher and student relationship ImpStu - Important of study
The dependent variable Y, representing income, quantifies the monthly earnings of an individual from their primary job, measured in millions of VND The responses are reverse coded, where a score of 1 indicates earnings below 4 million VND, a score of 2 reflects earnings between 4 million and 5.6 million VND, and a score of 3 denotes earnings ranging from 5.6 million to 7.2 million VND.
4 and 5 meaning from 7.2 – 8.8 million VND and above 8.8 million VND
English proficiency (Eng) refers to the level of English skills necessary to fulfill job requirements Respondents are asked to rate their English proficiency on a scale from 1 to 5, where 5 indicates an excellent level, 4 signifies good, 3 represents intermediate, 2 is between intermediate and beginning, and 1 denotes a beginning level.
Descriptive Statistics
Table 1 presents the descriptive statistics for the variables in the proposed model, highlighting the characteristics of the sampled population This section details the dependent variable alongside the key independent variables, providing insights into their essential features.
Table2: Summary statistics of independent and dependent variables
Kurtosis -0.47 0.18 0.68 -1.3 -1.4 0.89 1.68 0.39 0.78 0.39 -0.23 0.08 -0.37 -0.68 0.92 -0.29 -0.5 -0.64 -0.19 -1.50 Skewness -0.07 0.15 0.09 0.32 -0.1 0.75 1.12 -0.42 -0.2 -0.60 -0.01 -0.64 -0.55 -0.22 -0.56 -0.04 0.13 0.06 -0.35 -0.01 Range 4.00 4.00 4.00 4.00 4.00 5.00 4.00 3.00 4.00 4.00 3.00 3.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 Minimum 1.00 1.00 1.00 1.00 1.00 0.00 1.00 2.00 1.00 1.00 2.00 2.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Maximum 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00
Human capital is assessed through three variables, rated from 1 to 5, where 1 represents the lowest skill level and 5 the highest The average scores for English proficiency, computer skills, and communication skills are 2.67, 3.19, and 2.98, respectively, indicating an intermediate skill level Correlation analysis reveals no significant relationships among these variables According to Tabachnick & Fidell (2001), a lack of correlations above 0.4 suggests that further analysis may be unnecessary, and this study does not encounter that issue.
The Parental Education Measure (PareEdu) is rated on a scale from 1 to 5, where 5 represents a higher university education and 1 signifies education below high school level The average parental education level is 2.42, suggesting that, on average, parents have completed education between high school graduation and vocational college.
The average number of friends (Frien) is 3.2, while the average time spent with friends (FrienMeet) is 2.3 hours per week Both variables range from 1 to 5, reflecting the frequency of social interactions and time dedicated to meeting friends each week.
University activities encompass two key areas: participation in extra-curricular activities (ECA1) like music groups, sports teams, and English clubs, and involvement in community volunteer work (ECA2) such as green summer campaigns, environmental clean-ups, and traffic control The average participation levels are 1.93 for extra-curricular activities and 3.79 for community volunteer work, indicating that students are more engaged in volunteer efforts than in extra-curricular activities.
The study examines three key variables related to peer relationships during university: the importance of academic performance (PeerEdu) and the significance of social activities, including sports (PeerPupo1) and gatherings with friends (PeerPopu2) The average responses for these variables are 2.97, 3.48, and 3.51, respectively, with a score of 3 indicating a moderate level of importance This suggests that the sampled students place a moderate value on education within the context of their social interactions.
The quality of the teacher-student relationship during university is a crucial aspect of social capital, as evidenced by four key questions (TeachStu1, TeachStu2, TeachStu3, and TeachStu4) The average scores for these items, which are 3.60, 4.02, 3.87, and 3.49, indicate a generally positive perception of the teaching quality and the interactions between teachers and students.
Students’ perception of the university's impact is assessed through four key items, which evaluate their views on job opportunities, salary increases, responsibilities, and promotion prospects The average scores for these items are 2.95 for better job opportunities, 2.83 for higher salaries, 2.85 for increased responsibilities, and 3.12 for promotion opportunities Overall, respondents indicated a moderate belief in the university's influence on their career outcomes, including job quality, salary, responsibilities, and promotion potential.
Income of individual (Y): Mean of income of individual is 3.18, which is very close to monthly income from 5.6 to 7.2 million VND a month
The correlation matrix of independent variables, found in Appendix 1, indicates that there are no significant correlations among the variables According to Tabachnick & Fidell (2001), having few correlations above 0.4 suggests that further analysis may be unnecessary; fortunately, this is not an issue in our case.
Modeling Analyses
This section utilizes regression analysis to investigate the factors influencing individual income It is essential to validate the regression function against the OLS (Ordinary Least Squares) criteria to ensure that the estimators are BLUE (Best Linear Unbiased Estimators) The diagnostic tests for the regression function encompass evaluations of functional form, heteroscedasticity, normality, correlation, and multicollinearity The results of the final regression function are summarized in the following table.
Variable Coefficient Std Error t-Statistic Prob Note
Coefficient of determination, R-square, is 0.41, suggesting that about 41% of the variation in the individual income has been explained by the explanatory variable use in the model
Table 4: Regression result of continuous dependent variable
Variable Coefficient Std Error t-Statistic Prob Note
Coefficient of determination, R-square, is 0.27, suggesting that about 27% of the variation in the individual income has been explained by the explanatory variable use in the model
The regression result in table 4 with INCOME is continuous variable The result is similar to the result of table 3 There are four variables, Eng, PareEdu,
TeachStu1, and FRIEMEET, statistical significant at level 5% The differences are TeachStu2, ComuSkill are insignificant, and FRIENMEET is significant at level 5%
Table 5: Regression result (CFA method for social capital)
Std Error of the Estimate
Peer relationship-PEER -0.10 0.08 -0.06 -1.13 0.26 Teacher and Student relationship - TECHSTU
The regression result in table 5 uses CFA for social capital Most of variables are insignificant except PARE is significant at level 5%
The findings from three distinct methods (as shown in Tables 3, 4, and 5) indicate that Table 3 yields the most favorable results, aligning with existing literature and expectations Therefore, I will focus on the results from Table 3 for the explanation, policy implications, and conclusions of my research.
The regression analysis presented in Table 3 reveals a statistically significant relationship between human capital, social capital, and individual income Four variables—Eng, PareEdu, TeachStu1, and TeachStu2—are significant at the 5% level, while ComuSkill shows significance at the 10% level.
Proficiency in English is positively correlated with individual income, as evidenced by a coefficient of 0.24, which is significant at the 5% level This finding aligns with existing literature and supports the hypothesis that an increase of one level in English proficiency can lead to a 24% rise in income, assuming all other factors remain constant.
Comuski highlights the importance of communication skills, indicating a significant positive relationship with individual income at the 10% level Consistent with existing literature, the coefficient for Comuski is 0.26, suggesting that an increase in communication skills by one level can lead to a 26% rise in an individual's income, assuming all other factors remain constant.
The study highlights the significant impact of parents' education (PareEdu) on children's income, with a coefficient of 0.58 indicating that each level increase in parental education correlates to a 58% rise in individual income, holding other factors constant This finding aligns with existing literature emphasizing the importance of socioeconomic status (SES) as a key variable, where SES is conceptualized through parents' education The research underscores the strong positive relationship between SES and individual income, suggesting that higher parental education enhances home-based social capital This social capital, characterized by parent-child discussions about education and parental involvement in school activities, is more prevalent in families with higher SES Conversely, families with disadvantaged SES may experience limited engagement in educational discussions and school events, leading to less effective support for their children's academic endeavors.
Research shows that a teacher's interest in their students significantly impacts student outcomes, with a coefficient of 0.30 at a 5% significance level This finding aligns with existing literature, indicating that when teachers engage more with their students, it leads to positive effects on student performance Furthermore, an increase in teacher interest can result in a 30% rise in individual income, highlighting the importance of teacher-student engagement in the learning process.
Research indicates that cheating in university negatively impacts individual income A reduction in cheating correlates with improved financial outcomes for students, as evidenced by a significant coefficient of 0.21 at the 5% level Specifically, for every decrease in cheating, student income can increase by 21%, assuming all other factors remain constant.
This study examines whether social capital, especially in the form of parent’s education, and teacher and student relationship, and human capital, in form of
Strong English and communication skills are positively correlated with individual income, providing valuable insights for educators and policymakers This study reinforces existing literature, making the findings particularly relevant for university policymakers and career counselors.
The findings highlight the significant impact of human capital, represented by English and communication skills, and social capital, defined by parental education and teacher-student relationships, on individual income This aligns with existing theories and research, emphasizing the importance of both human and social capital for university graduates Enhancing these forms of capital poses a challenge for individuals, educators, and policymakers Fostering cooperation and harmony among all stakeholders can strengthen social structures, ultimately leading to improved material and spiritual well-being.
Investing in human capital, particularly in English and communication skills, is essential for individuals seeking to achieve a good income in today's knowledge economy Students should proactively enhance their English and communication abilities beyond academic learning by participating in clubs or groups, such as English speaking clubs, which can significantly improve both their language proficiency and interpersonal skills.
Parental education serves as an exogenous variable that significantly impacts children's development Educated parents are more likely to engage effectively with their children regarding school, future careers, and activities that greatly benefit their overall growth This underscores the importance of parental education in fostering a supportive environment for children's success.
The relationship between teachers and students significantly impacts individual income, highlighting its importance for educators Engaging classroom interactions, such as motivating questions and lesson-building by teachers, play a crucial role in this dynamic Therefore, educators should consider developing more out-of-class activities to strengthen teacher-student relationships.
Educational policymakers play a crucial role in fostering a supportive environment for educators, enabling them to effectively engage and motivate their students Additionally, it is essential for these policymakers to continuously enhance the education system, ensuring that both students and educators have the resources and opportunities necessary for personal and professional growth.
This study presents key findings on the income outcomes of university graduates in Ho Chi Minh City, emphasizing the role of both current and cumulative social capital alongside human capital The implications of these findings are discussed, highlighting their relevance to understanding income generation processes Additionally, the study acknowledges its limitations and offers suggestions for future research to further explore these dynamics.