RETURNS TO EDUCATION FOR MALAYSIAN ILKBS GRADUATES

Abstract

The Malaysian government has consistently invested in human capital development to achieve a developed, competitive and high income nation by 2020. As such, this study examines the rates of return to education for male and female graduates of Youth and Sports Skills Training Institution (ILKBS) Malaysia. Specifically, the objectives of this study are to estimate the private rates of return to education for ILKBS graduates and compare the private rates of returns to ILKBS graduates by gender. This study uses Mincer Earnings Method to estimate private returns to education for ILKBS graduates. This research uses a quantitative survey that involved a total of 3517 ILKBS graduates at the 11th IKBN/IKTBN Convocation Ceremony. Data was analysed using the Ordinary Least Square method. The findings of this study indicate that the average private returns to education for male and female graduates were 15.1% and 18.8% respectively. Furthermore, this study also found that the average private returns for male graduates (n=2416) and female graduates (n=1101) at diploma level are 16.9% and 17.9% respectively. The findings imply that further investment in the human capital development of ILKBS graduates will yield greater returns in the future.