Indian Journal of Education and Information Management

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Random effects model was used in this work to determine the compensation function, the estimator compared with the ordinary least squares (OLS) estimator. The results obtained show that the coefficients of the explanatory variables excluding Indirect taxes are positively related to compensation of employee and that all the coefficients of the explanatory variables except consumption of fixed capital are statistically significant. It also shows that the intercept value and the slope coefficients of the two models are relatively the same.

Keywords

Panel Data, Ordinary Least Squares, Random Effects
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