Returns to Education and Human Capital Externalities: Empirical Evidence from Indonesia

This thesis investigates the return to schooling and human capital externalities in Indonesia. It is found that estimated returns to schooling in Indonesia are substantially non-linear and considerably lower than in other Asian countries and developing countries. Furthermore, the findings provide evidence that human capital spillovers exist in Indonesia and support the view that investing in education is even more important for aggregate economic performance than it is for the individuals who do so

Instrumenting Education and Returns to Schooling in Indonesia

: Instrumenting Education and Returns to Schooling in Indonesia. This paper provides estimates of the profitability of investment in education in Indonesia, using IV approach and data for IFLS-4 (2007-2008). It also explores an alternative framework for assessing the present value of the financial gains from an extra year of schooling. This study finds that considering endogeneity bias via the IV method is important, and draws attention to family background factors being useful instruments. Another finding from this study that needs to be highlighted is that the benefit of continuing at school for an extra year is quite high

Determinants of Foreign Direct Invesment in Developing Countries: an Economic Perspective

Sejak decade 90-an aliran modal asing ke negara berkembang terus menunjukkan peningkatan. Hal ini memicu makin meningkatnya persaingan antar negara berkembang untuk menarik modal asing ini. Beberapa kajian empiris yang menelaah tentang faktor apa saja yang menentukan mengalirnya modal asing ini ke sejumlah negara berkembang menunjukkan hasil yang beragam

Perdagangan Elektronik: suatu Bentuk Pasar Baru yang Menjanjikan?

Electronic Commerce is claimed as a form of new market in electronic era. Although most current use of Electronic Commerce occurs at the inter-corporate and inter-organizational levels, Electronic Commerce services aimed at individual consumers are developing rapidly. The internet is a major catalyst in the diffusion of Electronic commerce into an increasing number of economic spheres, and is rapidly harmonizing the general environment in which electronic transactions of all kinds take place. This form of new market is able to create some incentives both in transaction management and business efficiency area. On the other hand, implementation of Electronic Commerce become an issue discussed extensively from many of point of view including: law, economic and technology

Estimating the Payoff to Schooling Using the Standard Mincerian Model

: Estimating the Payoff to Schooling using the Standard Mincerian Model. Using data from Indonesia Family Life Survey (IFLS) wave IV, this paper empirically estimates the private rates of return to education in Indonesia. The result from ordinary least-squares estimate shows that one year of schooling increases an individual's earnings by 5.66 percent. Futhermore, Standard Mincerian Earnings function estimates reveal a gender asymmetry in private economic returns to schooling, with returns to women's education being substantially and statistically significantly higher than men's

Externalities and the Social Return to Education in Indonesia

It is widely known that education provides economic benefits to individuals. However, education also has the potential to generate significant externalities. These external effects of education, in Indonesia, are the focus of the current paper. They are investigated using a local labour market (the province) approach. Significant externalities, as high as, or even much higher than, the private return to schooling, are documented, using both OLS and IV estimations. Sensitivity tests involving separate analyses for skill groups along the lines of Moretti (2004a) and Muravyev (2008), indicate that this finding is robust. The results thus strongly support the view that investing in education is more important for aggregate economic outcomes than it is for the individuals who do so. It appears that there is a clear role for the government fostering further expansion of education opportunities in Indonesia

Economic returns to schooling in a less developed country: evidence for Indonesia

The purpose of this study is to provide an update of the empirical evidence on the private return to schooling in Indonesia using sample data from Indonesian Family Life Survey 4 (IFLS 4). The augmented Mincerian model is utilised to quantify the private return to schooling. The main result obtained indicates that the return to schooling in Indonesia is relatively low compare to other Asian and Less Developed Countries. It is also found that return to schooling for females are significantly different from those of males