THE IMPACT OF HUMAN CAPITAL INVESTMENT ON THE EARNING PROFILE OF GOVERNMENT AND INTERNATIONAL SCHOOL TEACHERS (A COMPARATIVE STUDY BETWEEN GOVERNMENT & INTERNATIONAL SCHOOL TEACHERS IN WESTERN PROVINCE)

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.