Average and Marginal Returns to Upper Secondary Schooling in Indonesia

Pedro Carneiro, Michael Lokshin and Nithin Umapathi

Journal of Applied Econometrics, 2017, vol. 32, issue 1, 16-36

Abstract: This paper estimates average and marginal returns to schooling in Indonesia using a semiparametric selection model. Identification of the model is given by geographic variation in access to upper secondary schools. We find that the return to upper secondary schooling varies widely across individuals: it can be as high as 50% per year of schooling for those very likely to enroll in upper secondary schooling, or as low as −10% for those very unlikely to do so. Average returns for the student at the margin are substantial, but they are also well below those for the average student attending upper secondary schooling. Copyright © 2016 John Wiley & Sons, Ltd.

Date: 2017
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Related works:
Working Paper: Average and Marginal Returns to Upper Secondary Schooling in Indonesia (2011)
Working Paper: Average and marginal returns to upper secondary schooling in Indonesia (2011)
Working Paper: Average and Marginal Returns to Upper Secondary Schooling in Indonesia (2011)
Working Paper: Average and marginal returns to upper secondary schooling in Indonesia (2011)
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