Schooling and Labor Market Consequences of School Construction in Indonesia: Evidence from an Unusual Policy Experiment
American Economic Review
no. 4, September 2001
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.
"Schooling and Labor Market Consequences of School Construction in Indonesia: Evidence from an Unusual Policy Experiment."
American Economic Review,
Education: Government Policy
Economic Development: Human Resources; Human Development; Income Distribution; Migration
Wage Level and Structure; Wage Differentials
Analysis of Education
Human Capital; Skills; Occupational Choice; Labor Productivity