Average and Marginal Returns to Upper Secondary Schooling in Indonesia

40 Pages Posted: 20 Apr 2016

See all articles by Pedro Manuel Carneiro

Pedro Manuel Carneiro

University College London - Department of Economics; IZA Institute of Labor Economics

Michael Lokshin

World Bank - Development Research Group (DECRG); National Research University Higher School of Economics

Cristobal Ridao-Cano

World Bank - Development Research Group (DECRG)

Nithin Umapathi

World Bank

Multiple version iconThere are 3 versions of this paper

Date Written: November 1, 2011

Abstract

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).

Keywords: Education For All, Secondary Education, Teaching and Learning, Primary Education, Population Policies

Suggested Citation

Carneiro, Pedro Manuel and Lokshin, Michael and Ridao-Cano, Cristobal and Umapathi, Nithin, Average and Marginal Returns to Upper Secondary Schooling in Indonesia (November 1, 2011). World Bank Policy Research Working Paper No. 5878. Available at SSRN: https://ssrn.com/abstract=1957525

Pedro Manuel Carneiro

University College London - Department of Economics ( email )

Gower Street
London WC1E 6BT, WC1E 6BT
United Kingdom

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Michael Lokshin

World Bank - Development Research Group (DECRG) ( email )

1818 H. Street, N.W.
MSN3-311
Washington, DC 20433
United States
202-473-1772 (Phone)
202-522-1153 (Fax)

HOME PAGE: http://econ.worldbank.org/staff/mlokshin

National Research University Higher School of Economics

Myasnitskaya street, 20
Moscow, Moscow 119017
Russia

Cristobal Ridao-Cano

World Bank - Development Research Group (DECRG) ( email )

1818 H. Street, N.W.
MSN3-311
Washington, DC 20433
United States

Nithin Umapathi

World Bank ( email )

1818 H Street, N.W.
Washington, DC 20433
United States

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