18). The average number of years of schooling of<sup>wageearnershadincreasedfrom8 yearsin</sup> 1993 to 9 years in 1998. The proportion of wage<sup>earnerswithuppersecondary level orhigher</sup> had increased from 23 percent to 29 percent<sup>in1998.Realaverageearnings (convertedto</sup> January 1998 prices) have increased 11 percent annually<sup>overthefive-yearperiod1993-98.</sup> Figure 7 shows that in 1993 there were no clear<sup>differenceinrealearningsbetweencompleted</sup> education levels. Instead, a worker who had completed<sup>uppersecondaryschooldid not earn more</sup> than those with less education. And similarly,<sup>holdingofuniversitydegreedid notmakea</sup> significant difference in one's earnings. The<sup>wholepicturechanged in1998:thehigherwasthe</sup> education level one completed, the higher was<sup>theearning.Andthisisespeciallytrueat</sup> university level: university graduates earn 50 percent<sup>higherthan thatearnedby workers with</sup> only upper secondary school diploma. For those<sup>workingintheprivatesector,university</sup> graduates can earn almost three times more<sup>thanthatearnedbyworkerswithonlyupper</sup> secondary school diploma.

Rates of returns to investment in education<sup>are estimatedherefollowing upa work which</sup> had been done based on 1993 VLSS (Moock,<sup>1998).Theestimatesin this studyarebasedon</sup> wage data from VLSS93 and VLSS98 in an effort<sup>tocapturetheimpactofrecenteconomic</sup> reforms in Vietnam. Basic and extended<sup>Mincerianearning functionsare usedto estimatereturns</sup> to schooling and levels of education. In the extended<sup>model,fourlevelsof generaleducation</sup> system in Vietnam were considered: primary, lower<sup>secondary,uppersecondary,and university /</sup> college. And impact of vocational training<sup>(withthree categories:vocationaltrainingafter</sup> primary, lower secondary, and upper secondary<sup>schools)hasbeenestimatedseparatelyfrom</sup> benefit of general education (from<sup>primaryup touniversityandcollege).Astheearning</sup> difference between public and private sectors<sup>was statisticallysignificant,modelswereestimated</sup> separately for the private as this is expected<sup>tobemoreflexible tochangesinlabormarketthan</sup> the public one in transitional period.

**Table 18: Mean of selected variables by sex and**<sup>**sectorof employment, 1993-98**</sup>

||To|tal|Pub|lic|Priv|ate|Ma<br>|les<br>|Fem<br>|ales<br>|
|---|---|---|---|---|---|---|---|---|---|---|
|Variable|1993|1998|1993|1998|1993|1998|1993|1998|1993|1998|
|Age(years)|31.3|32.9|34|37|29|30|32|33|31|32|
|Yearsofschooling|8.2|9.0|11.1|12.2|6.0|7|8|9|8|9|
|Yearsofexperience|17.1|17.9|17.4|18.8|16.9|17|17|18|17|17|
|Realearnings/month<br>('OOOVND)|342|570|311|612|365|542|383|620|279|493<br>|
|Public sector|0.43|0.40|1|1|0|0|0.39|0.37|0.49|0.45|
|Hours-worked/week|46|47|44|45|48|49|47|48|45|47|
|Numberofobservations|2251|3199|966|1293|1285|1906|1358|1942|893|1257|
|_Educationlevel(lo)_*|||||||||||
|Noeducation|22|21|6|5|34|33|21|21|24|23|
|Primary|27|26|15|14|35|34|29|27|24|24|
|Lowersecondary|28|25|36|27|23|24|29|26|28|23|
|Upper secondary|16|20|28|35|7|9|14|18|19|22|
|University/college|7|9|15|19|0|1|7|8|6|9|

_Source:_ 1992-93 and 1997-98 VLSS 21