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Average and Marginal Returns to Upper Secondary Schooling in Indonesia

Carneiro, PM; Umapathi, N; Lokshin, M; (2017) Average and Marginal Returns to Upper Secondary Schooling in Indonesia. Journal of Applied Econometrics , 32 (1) pp. 16-36. 10.1002/jae.2523. Green open access

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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.

Type: Article
Title: Average and Marginal Returns to Upper Secondary Schooling in Indonesia
Open access status: An open access version is available from UCL Discovery
DOI: 10.1002/jae.2523
Publisher version: http://dx.doi.org/10.1002/jae.2523
Language: English
Additional information: This is the peer reviewed version of the following article: Carneiro, PM; Umapathi, N; Lokshin, M; (2016) Average and Marginal Returns to Upper Secondary Schooling in Indonesia. Journal of Applied Econometrics, which has been published in final form at: http://dx.doi.org/10.1002/jae.2523. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Self-Archiving.
UCL classification: UCL
UCL > Provost and Vice Provost Offices > UCL SLASH
UCL > Provost and Vice Provost Offices > UCL SLASH > Faculty of S&HS
UCL > Provost and Vice Provost Offices > UCL SLASH > Faculty of S&HS > Dept of Economics
URI: https://discovery.ucl.ac.uk/id/eprint/1493242
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