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Average and marginal returns to upper secondary schooling in Indonesia

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  • Carneiro, Pedro
  • Lokshin, Michael
  • Ridao-Cano, Cristobal
  • Umapathi, Nithin

Abstract

This paper estimates average and marginal returns to schooling in Indonesia using a non-parametric selection model estimated by local instrumental variables, and data from the Indonesia Family Life Survey. The analysis finds that the return to upper secondary schooling varies widely across individual: 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. Returns to the marginal student (14 percent) are well below those for the average student attending upper secondary schooling (27 percent).

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Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 5878.

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Date of creation: 01 Nov 2011
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Handle: RePEc:wbk:wbrwps:5878

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Keywords: Education For All; Secondary Education; Teaching and Learning; Primary Education; Population Policies;

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  1. James Heckman & Pedro Carneiro, 2003. "Human Capital Policy," NBER Working Papers 9495, National Bureau of Economic Research, Inc.
  2. Lorraine Dearden & Leslie McGranahan & Leslie McGranahan & Barbara Sianesi, 2004. "Returns to Education for the Marginal Learner: Evidence from the BCS70," CEE Discussion Papers 0045, Centre for the Economics of Education, LSE.
  3. James J. Heckman & Edward Vytlacil, 2005. "Structural Equations, Treatment Effects and Econometric Policy Evaluation," NBER Working Papers 11259, National Bureau of Economic Research, Inc.
  4. Bjorklund, Anders & Moffitt, Robert, 1987. "The Estimation of Wage Gains and Welfare Gains in Self-selection," The Review of Economics and Statistics, MIT Press, vol. 69(1), pages 42-49, February.
  5. Esther Duflo, 2002. "The Medium Run Effects of Educational Expansion: Evidence from a Large School Construction Program in Indonesia," NBER Working Papers 8710, National Bureau of Economic Research, Inc.
  6. Belton Fleisher & Xiaojun Wang & Haizheng Li & Shi Li, 2009. "Access to Higher Education and Inequality: The Chinese Experiment," Working Papers 09-02, Ohio State University, Department of Economics.
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