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The Impact of Schooling Reform on Returns to Education in Malaysia

  • Ismail, Ramlee

The objective of this paper is to examine the impact of education reforms on earnings. One of the significant changes in the Malaysian education system was the schooling reform of 1970 that changed the medium of instruction from the English language to the Malaysian national language. Using data from the Household Income Surveys of 2002 and 2004, this paper updates the private rate of return to education. Applying a homogenous return model, using an ordinary least square (OLS) regression indicates that the private rate of returns to education is close to the world average. Using the Instrumental Variable approach, however, the impact of the schooling reforms indicates that the private rate of return to education is higher than the average.

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File URL: https://mpra.ub.uni-muenchen.de/15021/1/MPRA_paper_15021.pdf
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 15021.

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Date of creation: 29 Jan 2007
Date of revision: 29 Jan 2008
Handle: RePEc:pra:mprapa:15021
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  8. Meghir, Costas & Palme, Mårten, 1999. "Assessing the Effect of Schooling on Earnings Using a Social Experiment," SSE/EFI Working Paper Series in Economics and Finance 313, Stockholm School of Economics.
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  24. Blundell, Richard, et al, 2000. "The Returns to Higher Education in Britain: Evidence from a British Cohort," Economic Journal, Royal Economic Society, vol. 110(461), pages F82-99, February.
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