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Returns to education: updates for Malaysia

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  • T. -P. Chung

Abstract

This article provides updated returns to education estimates for Malaysia. Current returns as presented in international updates are 32.6 and 34.5 for the secondary and higher education levels. New estimates were obtained using data from the Malaysian Household Income Survey 1997, a nationally represented survey. The findings show that returns to education remain high and positive, in particular, the returns to the higher educational level, encompassing the pre-university qualification and higher education qualifications. Results also display marginal gross returns of 14.1 for those completing the upper secondary education level and 16.4 for those completing the higher education level for the overall sample. By gender, the marginal gross returns for males are 12.0 at the upper secondary level and 18.1 at the higher education level and for females, 15.7 and 16.4 respectively.

Suggested Citation

  • T. -P. Chung, 2003. "Returns to education: updates for Malaysia," Applied Economics Letters, Taylor & Francis Journals, vol. 10(13), pages 837-841.
  • Handle: RePEc:taf:apeclt:v:10:y:2003:i:13:p:837-841
    DOI: 10.1080/1350485032000138926
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    References listed on IDEAS

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    1. George Psacharopoulos, 1985. "Returns to Education: A Further International Update and Implications," Journal of Human Resources, University of Wisconsin Press, vol. 20(4), pages 583-604.
    2. Arjun Bedi & Noel Gaston, 1997. "Returns to endogenous education: the case of Honduras," Applied Economics, Taylor & Francis Journals, vol. 29(4), pages 519-528.
    3. George Psacharopoulos & Harry Anthony Patrinos, 2004. "Returns to investment in education: a further update," Education Economics, Taylor & Francis Journals, vol. 12(2), pages 111-134.
    4. Colm Harmon & Hessel Oosterbeek & Ian Walker, 2000. "The returns to education : a review of evidence, issues and deficiencies in the literature," Open Access publications 10197/670, School of Economics, University College Dublin.
    5. Siphambe, Happy Kufigwa, 2000. "Rates of return to education in Botswana," Economics of Education Review, Elsevier, vol. 19(3), pages 291-300, June.
    6. M. Idrus & S. Cameron, 2000. "Returns to Education between the Self-employed and Employed Sectors: Evidence from Malaysia," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 39(3), pages 263-268.
    7. Psacharopoulos, George, 1994. "Returns to investment in education: A global update," World Development, Elsevier, vol. 22(9), pages 1325-1343, September.
    8. Falaris, Evangelos M, 1995. "The Role of Selectivity Bias in Estimates of the Rate of Return to Schooling: The Case of Married Women in Venezuela," Economic Development and Cultural Change, University of Chicago Press, vol. 43(2), pages 333-350, January.
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    Cited by:

    1. Ismail, Ramlee, 2007. "The Impact of Schooling Reform on Returns to Education in Malaysia," MPRA Paper 15021, University Library of Munich, Germany, revised 29 Jan 2008.

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