Long-Term and Intergenerational Effects of Education: Evidence from School Construction in Indonesia

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Abstract

We study long-term and intergenerational effects of the 1970’s Indonesian school construction program. Exploiting variation across birth cohorts and districts in number of schools built suggests that 43 years later men are more likely to work formally, outside agriculture, and migrate, and men and women have better marriage market outcomes. Households with exposed women have higher living standards and pay more taxes. Mother's program exposure leads to increased schooling for her children, with larger effects in secondary and tertiary education. Cost-benefit analyses indicate school construction leads to higher tax revenues and improved living standards offsetting construction costs within 18–54 years.
Original languageEnglish (US)
Article numberueac058
JournalThe Economic Journal
DOIs
StateE-pub ahead of print - Oct 31 2022

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