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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