Rate of Return on Education in Indonesia: The Privilege of A High Economic Group and Urban Areas
Investing in education for an individual is one of the best ways to improve their welfare. However, each individual’s returns from education investment vary depending on individual characteristics, household, and regional support. This study aims to analyze the rate of return on education of individ...
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| Format: | UMS Journal (OJS) |
| Language: | eng |
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Muhammadiyah University Press
2021
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| Online Access: | https://journals.ums.ac.id/index.php/JEP/article/view/13006 |
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| author | Martak, Yusuf Faisal Chotib, Chotib |
| author_facet | Martak, Yusuf Faisal Chotib, Chotib |
| author_sort | Martak, Yusuf Faisal |
| collection | OJS |
| description | Investing in education for an individual is one of the best ways to improve their welfare. However, each individual’s returns from education investment vary depending on individual characteristics, household, and regional support. This study aims to analyze the rate of return on education of individuals in Indonesia in general and based on the characteristics of the residence and the individual’s economic level. Using the Mincer equation, the results of the study show that urban types functionally and administratively have a higher average rate of return than functional and administrative rural areas of 2.9% and 1.9%, respectively. In addition, the rate of return to education at the economic level of quantile 5 in urban areas is 2 times higher than that of quantile 1 in urban areas and quantile 5 in rural areas. |
| format | UMS Journal (OJS) |
| id | oai:ojs2.journals.ums.ac.id:article-13006 |
| institution | Universitas Muhammadiyah Surakarta |
| language | eng |
| publishDate | 2021 |
| publisher | Muhammadiyah University Press |
| record_format | ojs |
| spelling | oai:ojs2.journals.ums.ac.id:article-13006 Rate of Return on Education in Indonesia: The Privilege of A High Economic Group and Urban Areas Martak, Yusuf Faisal Chotib, Chotib Returns to education, urban, socioeconomic, inequality P25;I24 Investing in education for an individual is one of the best ways to improve their welfare. However, each individual’s returns from education investment vary depending on individual characteristics, household, and regional support. This study aims to analyze the rate of return on education of individuals in Indonesia in general and based on the characteristics of the residence and the individual’s economic level. Using the Mincer equation, the results of the study show that urban types functionally and administratively have a higher average rate of return than functional and administrative rural areas of 2.9% and 1.9%, respectively. In addition, the rate of return to education at the economic level of quantile 5 in urban areas is 2 times higher than that of quantile 1 in urban areas and quantile 5 in rural areas. Muhammadiyah University Press Universitas Indonesia Article 33 Indonesia 2021-07-24 info:eu-repo/semantics/article info:eu-repo/semantics/publishedVersion application/pdf https://journals.ums.ac.id/index.php/JEP/article/view/13006 10.23917/jep.v22i1.13006 Jurnal Ekonomi Pembangunan: Kajian Masalah Ekonomi dan Pembangunan; Vol 22, No 1 (2021): JEP 2021; 54-59 2460-9331 1411-6081 eng https://journals.ums.ac.id/index.php/JEP/article/view/13006/6789 https://journals.ums.ac.id/index.php/JEP/article/downloadSuppFile/13006/2553 Copyright (c) 2021 Jurnal Ekonomi Pembangunan: Kajian Masalah Ekonomi dan Pembangunan https://creativecommons.org/licenses/by/4.0 |
| spellingShingle | Returns to education, urban, socioeconomic, inequality P25;I24 Martak, Yusuf Faisal Chotib, Chotib Rate of Return on Education in Indonesia: The Privilege of A High Economic Group and Urban Areas |
| title | Rate of Return on Education in Indonesia: The Privilege of A High Economic Group and Urban Areas |
| title_full | Rate of Return on Education in Indonesia: The Privilege of A High Economic Group and Urban Areas |
| title_fullStr | Rate of Return on Education in Indonesia: The Privilege of A High Economic Group and Urban Areas |
| title_full_unstemmed | Rate of Return on Education in Indonesia: The Privilege of A High Economic Group and Urban Areas |
| title_short | Rate of Return on Education in Indonesia: The Privilege of A High Economic Group and Urban Areas |
| title_sort | rate of return on education in indonesia the privilege of a high economic group and urban areas |
| topic | Returns to education, urban, socioeconomic, inequality P25;I24 |
| topic_facet | Returns to education, urban, socioeconomic, inequality P25;I24 |
| url | https://journals.ums.ac.id/index.php/JEP/article/view/13006 |
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