NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

The Medium Run Effects of Educational Expansion: Evidence from a Large School Construction Program in Indonesia

Esther Duflo

NBER Working Paper No. 8710
Issued in January 2002
NBER Program(s):   CH

This paper studies the medium run consequences of an increase in the rate of accumulation of human capital in a developing country. From 1974 to 1978, the Indonesian government built over 61,000 primary schools. The school construction program led to an increase in education among individuals who were young enough to attend primary school after 1974, but not among the older cohorts. 2SLS estimates suggest that an increase of 10 percentage points in the proportion of primary school graduates in the labor force reduced the wages of the older cohorts by 3.8% to 10% and increased their formal labor force participation by 4% to 7%. I propose a two-sector model as a framework to interpret these findings. The results suggest that physical capital did not adjust to the faster increase in human capital.

download in pdf format
   (329 K)

email paper

This paper is available as PDF (329 K) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w8710

Published: Duflo, Esther, 2004. "The medium run effects of educational expansion: evidence from a large school construction program in Indonesia," Journal of Development Economics, Elsevier, vol. 74(1), pages 163-197, June. citation courtesy of

Users who downloaded this paper also downloaded these:
Duflo w7860 Schooling and Labor Market Consequences of School Construction in Indonesia: Evidence from an Unusual Policy Experiment
Acemoglu and Angrist w7444 How Large are the Social Returns to Education? Evidence from Compulsory Schooling Laws
Banerjee, Cole, Duflo, and Linden w11904 Remedying Education: Evidence from Two Randomized Experiments in India
Duflo, Glennerster, and Kremer t0333 Using Randomization in Development Economics Research: A Toolkit
Kremer and Maskin w5718 Wage Inequality and Segregation by Skill
 
Publications
Activities
Meetings
NBER Videos
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us