This paper estimates average and marginal returns to schooling in Indones 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).
Author: Carneiro,Pedro;Lokshin,Michael;Ridao-Cano,Cristobal;Umapathi, Nithin. Document Date: 2011/11/01.Document Type: Policy Research Working Paper.Report Number: WPS5878. Volume No: 1 of 1. Country:Indonesia.Disclosure Date: 2011/11/01
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