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Average and marginal returns to upper secondary schooling in Indonesia
 
Author:Carneiro, Pedro; Lokshin, Michael; Ridao-Cano, Cristobal; Umapathi, Nithin; Collection Title:Policy Research working paper ; no. WPS 5878
Country:Indonesia; Date Stored:2011/11/09
Document Date:2011/11/01Document Type:Policy Research Working Paper
SubTopics:Primary Education; Teaching and Learning; Secondary Education; Education For All; Population PoliciesLanguage:English
Region:East Asia and PacificReport Number:WPS5878
Volume No:1 of 1  

Summary: This paper estimates average and marginal returns to schooling in Indonesia using a non-parametric selection model estimated by local instrumental variables, and data from the Indonesia Family Life Survey. The analysis finds that the return to upper secondary schooling varies widely across individual: 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. Returns to the marginal student (14 percent) are well below those for the average student attending upper secondary schooling (27 percent).

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