Title: Rate of Return on Investment in Senior High School and Vocational School Education in Indonesia in 2015 and 2018
Author: Nuelda Amalia
Item Type : Thesis (Thesis)
Affiliations: Master of Management Science Study Program, Faculty of Economics and Business, Universitas Airlangga , Surabaya, Indonesia
Publisher: Universitas Airlangga
Abstract
This research aims to analyze the rate of return on investment in SMA and SMK 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. Estimated rate of return on investment in SMA and SMK secondary education. Vocational School is carried out using the Two-Step-Heckman Method which is a development of the Human Capital Earning Function (HCEF) Model—or what is commonly known as the Mincer Model—to overcome sample-selection-bias. The results of data processing show that in 2015 the rate of return on investment in high school education (9.32%) was higher than vocational school (8.89%). However, in 2018, this result experienced a shift with the return on investment in vocational school education (9.53%) being higher than high school (9.41%). This shift is caused by the higher income received by vocational school graduate workers compared to high school graduate workers and the increasing number of vocational school graduate workers who are absorbed in the formal sector compared to high school graduate workers.
Keywords: returns to education, returns to general education, returns to vocational education, mincer, hcef, heckman
Sources: http://repository.unair.ac.id/94169/
