Schooling and Labor Market Consequences of School Construction in Indonesia: Evidence from an Unusual Policy Experiment
American Economic Review · 2001 · Volume 91 · Issue 4
Abstract
Between 1973 and 1978, the Indonesian government engaged in one of the largest school construction programs on record. Combining differences across regions in the number of schools constructed with differences across cohorts induced by the timing of the program suggests that each primary school constructed per 1,000 children led to an average increase of 0.12 to 0.19 years of education, as well as a 1.5 to 2.7 percent increase in wages. This implies estimates of economic returns to education ranging from 6.8 to 10.6 percent.
Keywords
Education: Government Policy, Economic Development: Human Resources, Human Development, Income Distribution, Migration, Wage Level and Structure, Wage Differentials, Analysis of Education, Project Analysis, Human Capital, Skills, Occupational Choice, Labor Productivity
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