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Average and Marginal Returns to Upper Secondary Schooling in Indonesia

Author

Listed:
  • Carneiro, Pedro

    () (University College London)

  • Lokshin, Michael

    () (World Bank and Higher School of Economics, Moscow)

  • Ridao-Cano, Cristobal

    () (World Bank)

  • Umapathi, Nithin

    () (World Bank)

Abstract

This paper estimates average and marginal returns to schooling in Indonesia using a non-parametric selection model. Identification of the model is given by exogenous geographic variation in access to upper secondary schools. We find that the return to upper secondary schooling varies widely across individuals: 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. Average returns for the student at the margin are well below those for the average student attending upper secondary schooling.

Suggested Citation

  • Carneiro, Pedro & Lokshin, Michael & Ridao-Cano, Cristobal & Umapathi, Nithin, 2011. "Average and Marginal Returns to Upper Secondary Schooling in Indonesia," IZA Discussion Papers 6162, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp6162
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    References listed on IDEAS

    as
    1. Willis, Robert J & Rosen, Sherwin, 1979. "Education and Self-Selection," Journal of Political Economy, University of Chicago Press, vol. 87(5), pages 7-36, October.
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    Cited by:

    1. Xinxin Chen & Yaojiang Shi & Hongmei Yi & Linxiu Zhang & Di Mo & James Chu & Prashant Loyalka & Scott Rozelle, 2013. "The impact of a senior high school tuition relief program on poor junior high schoolstudents in rural China," Working Papers PIERI 2013-03, PEP-PIERI.
    2. Radchenko, Natalia, 2014. "Heterogeneity in Informal Salaried Employment: Evidence from the Egyptian Labor Market Survey," World Development, Elsevier, vol. 62(C), pages 169-188.

    More about this item

    Keywords

    returns to schooling; marginal return; average return; marginal treatment effect;

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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