Journal of Economics and Management
Volume 14, No. 1
February, 2018

Does Human Capital Matter to Vendor Profitability: Evidence from Taiwan

Yu-Hsien Tsai
Graduate Institute of Industrial Economics, National Central University, Taiwan.

Chih-Hai Yang
Department of Economics, National Central University, Taiwan.

Abstract
This paper examines the role of human capital on influencing vendor profit. Using a unique vendor survey from Taiwan, we find human capital, measured by owners’ education and experience, is positively related to vendor profit. Particularly, education tends to associate an inversed-U relationship with the vendor profit that vendors run by high school educated owners gain a highest profit, on average. The influences of education and experience on profit are similar for both food and non-food vendors, even though their operation skills and knowledge are likely diverse. Other owner characteristics, such as age and gender, also matter to vendor profit.

Keywords:Vendor, Human Capital, Profitability.

JEL Classifications:J49, L25.
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