Average and Marginal Returns to Upper Secondary Schooling in Indonesia
AbstractThis paper estimates average and marginal returns to schooling in Indonesia using a non-parametric selection model. Identification of the model is given by exogenous geographic variation in access to upper secondary schools. We find that the return to upper secondary schooling varies widely across individuals: it can be as high as 50 percent per year of schooling for those very likely to enroll in upper secondary schooling, or as low as -10 percent for those very unlikely to do so. Average returns for the student at the margin are well below those for the average student attending upper secondary schooling.
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Bibliographic InfoPaper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 8689.
Date of creation: Dec 2011
Date of revision:
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Other versions of this item:
- Carneiro, Pedro & Lokshin, Michael & Ridao-Cano, Cristobal & Umapathi, Nithin, 2011. "Average and marginal returns to upper secondary schooling in Indonesia," Policy Research Working Paper Series 5878, The World Bank.
- Pedro Carneiro & Michael Lokshin & Cristobal Ridao-Cano & Nithin Umapathi, 2011. "Average and marginal returns to upper secondary schooling in Indonesia," CeMMAP working papers CWP36/11, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
- Carneiro, Pedro & Lokshin, Michael & Ridao-Cano, Cristobal & Umapathi, Nithin, 2011. "Average and Marginal Returns to Upper Secondary Schooling in Indonesia," IZA Discussion Papers 6162, Institute for the Study of Labor (IZA).
- J2 - Labor and Demographic Economics - - Demand and Supply of Labor
- J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-12-13 (All new papers)
- NEP-EDU-2011-12-13 (Education)
- NEP-LAB-2011-12-13 (Labour Economics)
- NEP-SEA-2011-12-13 (South East Asia)
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