Friday, November 18, 2011

Return to investment in education

Using Indonesia Family Life Survey, this WB policy research working paper shows that return to upper secondary schooling in Indonesia is as high as 50 percent per year of schooling for those very likely to enroll in upper secondary schooling, or as low as -10 percent for those unlikely to do so. Furthermore, returns to the marginal student (14 percent) are well below those for the average student attending upper secondary schooling (27 percent).

Meanwhile, the chart below shows returns to investment in education by level in few countries. The estimation for Nepal is that of 1999. More on why education is not a binding constraint to growth in Nepal is explained here.