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  



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 classification:  J49, L25