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School Repetition, Dropouts, and the Rates of Return to Schooling: The Case of Indonesia

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Author Info
Behrman, Jere R
Deolalikar, Anil B

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Abstract

Standard Estimates of the rates of return to primary schooling in most developing countries are high, and have been used to support advocacy of increased investments in primary schooling. But the standard estimates ignore repetition and dropout experience. This paper develops a procedure for estimating the impact of repetition and dropout rates and applies it to Indonesian data. The results are striking, suggesting that standard procedures overstate substantially the economic returns to schooling in Indonesia (eg. by 38 to 78 percent for primary schooling), distort the pattern of estimated returns across schooling levels by overestimating especially the returns to the lower schooling levels, and misrepresent the relative returns to schooling investments among groups identified by sex, rural-urban residence, and age. Copyright 1991 by Blackwell Publishing Ltd

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Publisher Info
Article provided by Department of Economics, University of Oxford in its journal Oxford Bulletin of Economics & Statistics.

Volume (Year): 53 (1991)
Issue (Month): 4 (November)
Pages: 467-80
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Handle: RePEc:bla:obuest:v:53:y:1991:i:4:p:467-80

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Web page: http://www.blackwellpublishing.com/journal.asp?ref=0305-9049

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  1. King, Elizabeth M & Orazem, Peter & Paterno, Elizabeth M, 2008. "Promotion with and without Learning: Effects on Student Enrollment and Dropout Behavior," Staff General Research Papers 12968, Iowa State University, Department of Economics. [Downloadable!]
    Other versions:
  2. Suzanne Duryea, 1998. "El avance de los niƱos a lo largo del sistema educativo en Brasil: el papel de las sacudidas transitorias del ingreso familiar," RES Working Papers 4125, Inter-American Development Bank, Research Department. [Downloadable!]
  3. Patrinos, Harry Anthony & Psacharopoulos, George, 1992. "Socioeconomic and ethnic determinants of grade repetition in Bolivia and Guatemala," Policy Research Working Paper Series 1028, The World Bank. [Downloadable!]
  4. Lachler, Ulrich, 1998. "Education and earnings inequality in Mexico," Policy Research Working Paper Series 1949, The World Bank. [Downloadable!]
  5. Suzanne Duryea, 1998. "Children's Advancement Through School in Brazil: The Role of Transitory Shocks to Household Income," RES Working Papers 4124, Inter-American Development Bank, Research Department. [Downloadable!]
  6. Susan W. Parker & Luis Rubalcava & Graciela Teruel, 2002. "Schooling Inequality among the Indigenous: A Problem of Resources or Language Barriers?," RES Working Papers 3134, Inter-American Development Bank, Research Department. [Downloadable!]
  7. Gurleen Popli, 2005. "Rising Wage Inequality in Mexico: Structural Reforms or Changing Labor Market Institutions?," Working Papers 2005016, The University of Sheffield, Department of Economics, revised Nov 2005. [Downloadable!]
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