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

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  • Yamauchi, Futoshi

Abstract

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.

Suggested Citation

  • Yamauchi, Futoshi, 2005. "Why Do Schooling Returns Differ? Screening, Private Schools, and Labor Markets in the Philippines and Thailand," Economic Development and Cultural Change, University of Chicago Press, vol. 53(4), pages 959-981, July.
  • Handle: RePEc:ucp:ecdecc:y:2005:v:53:i:4:p:959-81
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    File URL: http://dx.doi.org/10.1086/429151
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    1. Gary S. Becker, 1962. "Investment in Human Capital: A Theoretical Analysis," Journal of Political Economy, University of Chicago Press, vol. 70, pages 1-9.
    2. Quisumbing, Agnes R. & Estudillo, Jonna P. & Otsuka, Keijiro, 2004. "Land and schooling," Food policy statements 41, International Food Policy Research Institute (IFPRI).
    3. 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.
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    6. Psacharopoulos, George, 1994. "Returns to investment in education: A global update," World Development, Elsevier, vol. 22(9), pages 1325-1343, September.
    7. 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 966-991, October.
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    Cited by:

    1. Futoshi Yamauchi, 2008. "Early Childhood Nutrition, Schooling, and Sibling Inequality in a Dynamic Context: Evidence from South Africa," Economic Development and Cultural Change, University of Chicago Press, vol. 56, pages 657-682.
    2. Futoshi Yamauchi & Yanyan Liu, 2013. "Impacts of an Early Stage Education Intervention on Students' Learning Achievement: Evidence from the Philippines," Journal of Development Studies, Taylor & Francis Journals, vol. 49(2), pages 208-222, February.
    3. Yamauchi, Futoshi & Tiongco, Marites, 2013. "Why women are progressive in education? Gender disparities in human capital, labor markets, and family arrangement in the Philippines," Economics of Education Review, Elsevier, vol. 32(C), pages 196-206.
    4. Yamauchi, Futoshi & Liu, Yanyan, 2011. "Girls take over: Long-term impacts of an early stage education intervention in the Philippines," IFPRI discussion papers 1144, International Food Policy Research Institute (IFPRI).
    5. Yamauchi, Futoshi & Liu, Yanyan, 2012. "School quality, labor markets and human capital investments : long-term impacts of an early stage education intervention in the Philippines," Policy Research Working Paper Series 6247, The World Bank.

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