Journal
AMERICAN ECONOMIC REVIEW
Volume 91, Issue 4, Pages 795-813Publisher
AMER ECONOMIC ASSOC
DOI: 10.1257/aer.91.4.795
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Between 1973 and 1978, the Indonesian government engaged in one of the largest school construction programs oil 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.
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