Effect of Education on the Economic Income of Households in Peru, Application of the Mincer Theory in Times of Pandemic (COVID-19)

Abstract

The objective was to determine the effect of education on the economic income of households in Peru in times of the pandemic (COVID-19), for which a quantitative research approach was applied, of a non-experimental type and of descriptive-correlational design; the econometric model of log-linear type was used, based on the Mincer equation, with the information from the database of the National Household Survey, for the period of 2021. The economic income on average was 275.96 soles, with a standard deviation of 1451.41 soles, with high variability, identifying very precarious economic income ranging from 15.00 to 15,000.00 soles/month per worker; the years of schooling of the worker on average were 12 years, showing the scope of complete secondary training, with a population without years of education, and on the contrary, there are workers with postgraduate education, with the variability of 4 years. Finally, the effect of education measured through years of schooling on economic income is positive, or direct, since education explains 14.34% of economic income; the experience of the worker, gender, area of residence, age and marital status, in the same way, have a positive effect on economic income, strongly highlighting gender and area of residence which explain 19.86% and 30.45% of the economic income in the household in Peru.