Unobserved household and community heterogeneity and the labor market impact of schooling: a case study for Indonesia

Article Abstract:

This article discusses the effect of education on the labor market and the economy in Indonesia. It has been previously estimated that there is a 'social rate of return' of 17% to 22% when persons continue primary education. In the case for social rates of return in Indonesia the author finds that these figures are misleading. In Indonesia it was found that one more year of schooling generated an increase of 6% to 11% wage rate increase for males and a 6% to 17% increase for females. In Indonesia the 'control for unobserved household and community fixed effects changes the variables when figuring the impact of schooling on the labor market.'

Noncommercial research organizations, Developing countries, Indonesia, Wages, Wages and salaries

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The income gap in cognitive skills in rural Pakistan

Article Abstract:

A study focusing on the income gap in cognitive skills was done in rural Pakistan. Results indicate that there is a relationship between household income and the schooling of children. However, through the passing of years, the income gap in cognitive achievements is observed to be narrowing. Statistics show that in the 20-24 age group belonging to the high and low income households, the income gap is 51.1% while the gap in cognitive skills is 40.4%. For the 30-44 age group, income gap is 47.1% while the gap in cognitive skills is 53.1%.

EDUCATIONAL SERVICES, Education, Income per Household, Pakistan, Cognition, Income

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Economic policy changes and wage differentials in Latin America

Article Abstract:

A new data set on wage differentials according to labor education levels for 18 countries is used to determine the influence of economic liberalization reforms on wage differentials in Latin America. It is found that liberalizing policy changes have a strong positive effect on the wage gap but the effect becomes less overtime.

Economic Programs, Administration of Economic Programs, Latin America, Case studies, Influence, Economic policy, Business and education, Industry and education, Educational aspects, Wage gap

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