Estimate of the private return on education in Indonesia: Evidence from sibling data

Magdalena Triasih Dumauli

International Journal of Educational Development, 2015, vol. 42, issue C, 14-24

Abstract: This study reexamines the return on education (ROE) in Indonesia to solve the puzzle between the high ROE from previous studies and the low enrollment rate for higher education by taking into account endogeneity and sample selectivity issues. This study finds the OLS estimates of ROE in between 10% and 12%. After controlling for unobserved family background using sibling data, the Household Fixed Effect estimate indicates ROE reduces from 10.8% to 5%. This study argues ROE is not as high as previously estimated and may explain why the enrollment rate for college has been stagnating in Indonesia.

Keywords: Indonesia; Return on education; Higher education (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0738059315000255
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:injoed:v:42:y:2015:i:c:p:14-24

DOI: 10.1016/j.ijedudev.2015.02.012

Access Statistics for this article

International Journal of Educational Development is currently edited by Stephen P Heyneman

More articles in International Journal of Educational Development from Elsevier
Bibliographic data for series maintained by Catherine Liu ().