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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:	2011/11/01	Document Type:	Policy Research Working Paper
Language:	English	Region:	East Asia and Pacific
Report Number:	WPS5878	SubTopics:	Primary Education; Teaching and Learning; Secondary Education; Education For All; Population Policies
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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