Long-Term and Intergenerational Effects of Education: Evidence from School Construction in Indonesia

87 Pages Posted: 19 Nov 2018

See all articles by Richard Akresh

Richard Akresh

University of Illinois at Urbana-Champaign; IZA Institute of Labor Economics

Daniel Halim

University of Illinois at Urbana-Champaign

Marieke Kleemans

University of Illinois at Urbana-Champaign - Department of Economics

Date Written: November 2018

Abstract

In 1973, the Indonesian government began one of the largest school construction programs ever. We use 2016 nationally representative data to examine the long-term and intergenerational effects of additional schooling as a child. We use a difference-in-differences identification strategy exploiting variation across birth cohorts and regions in the number of schools built. Men and women exposed to the program attain more education, although women’s effects are concentrated in primary school. As adults, men exposed to the program are more likely to be formal workers, work outside agriculture, and migrate. Households with parents exposed to the program have improved living standards and pay more government taxes. Education benefits are transmitted to the next generation. Increased parental education has larger impacts for daughters, particularly if mothers are exposed to school construction. Intergenerational results are driven by changes in the marriage partner’s characteristics, with spouses having more education and improved labor market outcomes.

Suggested Citation

Akresh, Richard and Halim, Daniel and Kleemans, Marieke, Long-Term and Intergenerational Effects of Education: Evidence from School Construction in Indonesia (November 2018). NBER Working Paper No. w25265, Available at SSRN: https://ssrn.com/abstract=3286886

Richard Akresh (Contact Author)

University of Illinois at Urbana-Champaign ( email )

601 E John St
Champaign, IL 61820
United States

IZA Institute of Labor Economics

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

Daniel Halim

University of Illinois at Urbana-Champaign

601 E John St
Champaign, IL 61820
United States

Marieke Kleemans

University of Illinois at Urbana-Champaign - Department of Economics ( email )

410 David Kinley Hall
1407 W. Gregory
Urbana, IL 61801
United States

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