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Schooling and Labor Market Consequences of School Construction in Indonesia: Comment

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  • Roodman, David

Abstract

Duflo (2001) exploits a 1970s schooling expansion in Indonesia to estimate the returns to schooling. Under the study's difference-in-differences (DID) design, two patterns in the data-shallower pay scales for younger workers and negative selection in treatment-can violate the parallel trends assumption and upward-bias results. In response, I follow up later, test for trend breaks timed to the intervention, and perform changes-in-changes (CIC). I also correct data errors, cluster variance estimates, incorporate survey weights to correct for en-dogenous sampling, and test for (and detect) instrument weakness. Weak identification-robust inference yields imprecise, positive estimates. CIC estimates tilt slightly negative.

Suggested Citation

  • Roodman, David, 2023. "Schooling and Labor Market Consequences of School Construction in Indonesia: Comment," I4R Discussion Paper Series 15, The Institute for Replication (I4R).
    • Handle: RePEc:zbw:i4rdps:15
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    References listed on IDEAS

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    Cited by:

    1. David Roodman, 2023. "Large-Scale Education Reform in General Equilibrium: Regression Discontinuity Evidence from India: Comment," Papers 2303.11956, arXiv.org, revised Sep 2023.

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    More about this item

    Keywords

    education; wages; reanalysis;
    All these keywords.

    JEL classification:

    • I2 - Health, Education, and Welfare - - Education
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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