Return to Education by Ethnicity in Indonesia

ADE MARSINTA ARSANI

Return to Education by Ethnicity in Indonesia

dc.contributor.advisor	Mohamad Fahmi
dc.contributor.advisor	Tidak ada Data Dosen
dc.contributor.author	ADE MARSINTA ARSANI
dc.date.accessioned	2024-06-21T02:00:40Z
dc.date.available	2024-06-21T02:00:40Z
dc.date.issued	2022-01-13
dc.description.abstract	This study aims to examine the return to education in Indonesia by ethnicity using Instrumental Variable (IV) approach on Indonesia Family Life Survey (IFLS) in 2014/2015. We found that IV models are more appropriate to estimate returns to education in Indonesia rather than OLS estimation. Moreover, the ethnicity factor is better to treat as a grouping variable rather than as an instrumental variable. Disaggregating our samples into six ethnic groups, this study found that all ethnic groups except the Chinese group fit the IV estimation. For non-Chinese groups, Bataknese and Minangnese show the highest return to education. The strong enthusiasm in education cultures, as a part of cultural native properties in Bataknese and Minangnese, become the reason of the high return to education in these ethnics. Being married, being a man, working in public sector, and living in urban area also positively influence earnings. Based on these results, the ethnic-cultural aspects should be involved in the national curriculum, not just as part of the local curriculum. Government should also pay attention on gender segregation, occupational prospects, and urban-rural growth since these factors directly impact earnings.
dc.identifier.uri	https://repository.unpad.ac.id/handle/kandaga/120720190004
dc.subject	ethnicity
dc.subject	instrumental variable
dc.subject	return to education
dc.title	Return to Education by Ethnicity in Indonesia