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American Economic Review: Vol. 91 No. 4 (September 2001)

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Schooling and Labor Market Consequences of School Construction in Indonesia: Evidence from an Unusual Policy Experiment

Article Citation

Duflo, Esther. 2001. "Schooling and Labor Market Consequences of School Construction in Indonesia: Evidence from an Unusual Policy Experiment." American Economic Review, 91(4): 795-813.

DOI: 10.1257/aer.91.4.795

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.

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Authors

Duflo, Esther (MIT)

JEL Classifications

I28: Education: Government Policy
O15: Economic Development: Human Resources; Human Development; Income Distribution; Migration
J31: Wage Level and Structure; Wage Differentials
I21: Analysis of Education
O22: Project Analysis
J24: Human Capital; Skills; Occupational Choice; Labor Productivity


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