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Why Do Schooling Returns Differ? Screening, Private Schools, and Labor Markets in the Philippines and Thailand

  • Yamauchi, Futoshi

This article examines returns to schooling in the Philippines and Thailand, using recent employee surveys in manufacturing industries. Empirical results show that (i) schooling returns steadily increase as education attainment increases in Thailand, but the returns increase only at university level in the Philippines, and that (ii) private school premiums are higher in the Philippines than Thailand. The latter finding is consistent with the dominance of private institutions in the Philippine education system. The premiums from private schooling investments in the Philippines are, however, found to be spurious in the sense that private schools screen high ability students, which augments wage. Therefore, the productivity gain from private schooling is small.

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File URL: http://dx.doi.org/10.1086/429151
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Article provided by University of Chicago Press in its journal Economic Development and Cultural Change.

Volume (Year): 53 (2005)
Issue (Month): 4 (July)
Pages: 959-81

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Handle: RePEc:ucp:ecdecc:y:2005:v:53:i:4:p:959-81
Contact details of provider: Web page: http://www.journals.uchicago.edu/EDCC/

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  1. Psacharopoulos, George, 1994. "Returns to investment in education: A global update," World Development, Elsevier, vol. 22(9), pages 1325-1343, September.
  2. Schultz, Theodore W, 1975. "The Value of the Ability to Deal with Disequilibria," Journal of Economic Literature, American Economic Association, vol. 13(3), pages 827-46, September.
  3. Rosenzweig, Mark R, 1990. "Population Growth and Human Capital Investments: Theory and Evidence," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages S38-70, October.
  4. Evans, William N & Oates, Wallace E & Schwab, Robert M, 1992. "Measuring Peer Group Effects: A Study of Teenage Behavior," Journal of Political Economy, University of Chicago Press, vol. 100(5), pages 966-91, October.
  5. William N. Evans & Robert M. Schwab, 1995. "Finishing High School and Starting College: Do Catholic Schools Make a Difference?," The Quarterly Journal of Economics, Oxford University Press, vol. 110(4), pages 941-974.
  6. Behrman, Jere R., 1996. "Measuring the effectiveness of schooling policies in developing countries: Revisiting issues of methodology," Economics of Education Review, Elsevier, vol. 15(4), pages 345-364, October.
  7. Gary S. Becker, 1962. "Investment in Human Capital: A Theoretical Analysis," Journal of Political Economy, University of Chicago Press, vol. 70, pages 9.
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