The Impact of the Educational Attainment of Laborers on House hold Income of the Selected ASEAN Countries

Abstract

The main objective of the study is to provide an analysis of the Role of Educational Attainment of Laborers on Household Income of the Selected ASEAN Countries. The effect of the explanatory variables was estimated through the use of Panel Regression Analysis.

The findings revealed that all of the variables used in the model had passed the unit root test at level, which means that all other tests assume asymptotic normality, and therefore the variable was acceptable to use for modeling and regression. The results also found that there was a strong and positive correlation between educational attainments of labor on household income. Furthermore, the fixed-effect model has been used in the study. The Educational Attainment of Laborers positively contributed to Laborers' remarkable household income. Pooled Least Square Regression (PLSR) Model, Household Income (HI), was found to be statistically significant when taken individually and collectively. Moreover, the residuals based on pooled least square model were normally distributed. The educational level and variables significantly affect the income and performance of a laborer. The variations in workers' educational attainment were significantly explained by the variations in workers' household income. There were significant differences in educational attainment in ASEAN countries. The Fixed Effect Model is the appropriate Model to use for laborer's Educational Attainment and performance of household income.