Return on Investment for Senior High School and Vocational High Schools in Indonesia in 2015 and 2018

Amount: Return on Investment for Senior High School and Vocational High Schools in Indonesia in 2015 and 2018

Author: Nuelda Amalia

Item Type: Thesis

Memberships: Master of Management Science Study Program, Faculty of Economics and Business, Airlangga University, Surabaya, Indonesia

Publisher: Airlangga University

Abstract

This study aims to analyze the return on investment in high school and vocational secondary education in Indonesia, as well as its development in 2015 and 2018. The data used is the Indonesian National Labor Force Survey (Sakernas) data in 2015 and 2018. The estimated return on investment for high school and secondary education Vocational High School is carried out using the Two-Step-Heckman Method which is a development of the Human Capital Earning Function (HCEF) Model—or commonly known as the Mincer Model—to overcome sample-selection-bias. The results of data processing show that in 2015 the return on investment in SMA education (9,32%) was higher than SMK (8,89%). However, in 2018, this result shifted with the return on investment in vocational education (9,53%) higher than in high school (9,41%). This shift is caused by the higher income received by vocational school graduates than high school graduates and the increasing number of vocational high school graduates who are absorbed in the formal sector than high school graduates.

Keywords : returns to education, returns to general education, returns to vocational education, mincer, hcef, heckman

sources: http://repository.unair.ac.id/94169/