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Schooling and Labor Market Consequences of School Construction in Indonesia: Evidence from an Unusual Policy Experiment

  • Esther Duflo

Between 1973 and 1978, the Indonesian government engaged in one of the largest school construction programs on record. Combining differences across regions in the number of schools constructed with differences across cohorts induced by the timing of the program suggests that each primary school constructed per 1,000 children led to an average increase of 0.12 to 0.19 years of education, as well as a 1.5 to 2.7 percent increase in wages. This implies estimates of economic returns to education ranging from 6.8 to 10.6 percent.

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File URL: http://www.aeaweb.org/articles.php?doi=10.1257/aer.91.4.795
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Article provided by American Economic Association in its journal American Economic Review.

Volume (Year): 91 (2001)
Issue (Month): 4 (September)
Pages: 795-813

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Handle: RePEc:aea:aecrev:v:91:y:2001:i:4:p:795-813
Note: DOI: 10.1257/aer.91.4.795
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