The investment that one makes will yield a lot of benefits that will return
to oneself or the surroundings. The return of the benefits to the individual who
makes educational investment is called the return to education. This study aimed
to find out the return to education between male and female workers in West Java
in 2014.
The model employed was the Mincer earnings model. The data in the
study were the secondary data from SAKERNAS 2014 with 14,951 selected
samples. The analysis technique was multiple regression analysis.
The results of the study showed that the educational level, work
experience potential, work experience potential squared, and gender affect
earnings. The higher the educational level was, the higher return to education was.
The results of the chow test showed that there was a difference in the return to
education between male and female workers. The female workers had the higher
return to education than the male workers, except for the diploma education level.
The work experience potential had a significant positive effect. The coefficient of
the work experience potential squared was negative, indicating that each addition
of one year’s work experience increased the marginal earning and at a certain
point it would decrease. Male workers received earnings 40.48% higher than
female workers.