This paper estimates average and marginal returns to schooling in Indonesia using a non-parametric selection model. Identification of the model is given by exogenous 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 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. Average returns for the student at the margin are well below those for the average student attending upper secondary schooling.
Authors
Research Fellow University College London
Pedro is a Professor of Economics at University College London and an economist in the IFS' Centre for Microdata Methods and Practice (cemmap).
World Bank
Nithin was a PhD scholar at the Centre for Microdata Methods and Practice and UCL but no longer works at the Centre.
Michael Lokshin
Cristobal Ridao-Cano
Journal article details
- DOI
- 10.1002/jae.2523/full
- Publisher
- Journal of Applied Econometrics
- Issue
- Volume 32, Issue 1, November 2011, pages 16-36
Suggested citation
Carneiro, P et al. (2011). 'Average and marginal returns to upper secondary schooling in Indonesia' 32(1/2011), pp.16–36.
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