Abstract:
The efficiency and productivity of a worker are mainly determined by Human Capital
Investment (HCI) and the importance of firm-specific human capital for
organisational performance has been studied previously by many researchers. This
study aims to conduct a comparative study of HCI between teachers in government
and international schools. The study analyses the impact of HCI on the earnings of
each group comparatively. The questionnaire method was used to collect primary
data for this study, which was conducted in selected government schools and
international schools in the Western province. 432 government and 98 international
school teachers were selected for the sample using a multi-stage sampling procedure.
The endogenous switching regression model was used to derive the earning function
to investigate the impact of HCI on earnings. The study found that the tendency of
HCI increases with age at a decreasing rate. Being a government teacher, family
income and moonlighting (engaging secondary employment) have a positive
relationship with HCI while being permanent and years of education have significant
negative relationships with HCI. The study concludes that human capital investment
accounts for a higher proportion of wage differentials of school teachers, showing
the positive impact of HCI on earnings.
