DEVELOPMENT OF EDUCATION RETURN RATE IN EAST JAVA 2015 AND 2018
DOI:
https://doi.org/10.53572/ejavec.v3i2.29Keywords:
Tingkat Pengembalian Investasi Pendidikan, Penghasilan, Profitabilitas, Jawa TimurAbstract
Education provides many benefits for the workforce, one of which is income when enter-
ing the labor market. The return on educational benefits as measured by income is often
referred to as the rate of return on education investment. This study aims to determine
the development of the rate of return on education investment in East Java in 2015 and
2018. The data used are data from the East Java National Labor Force Survey (Sakernas) in
2015 and 2018. The estimated rate of return on education investment is carried out using
the Heckman Selection Model Method which uses the Heckman Selection Model. modified
Mincer’s Income Function Model to overcome sample-selectivity-bias. The result is that
the rate of return on investment in education in East Java in 2015 and 2018 generally
increased, except at the higher education level.
Keywords: Return on Investment Education, Income, Profitability, East Java
JEL : I26, I25, N35
References
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Mincer, J. (1974). The Human Capital Earnings Function. In Schooling, Experience, and Earnings: Vol. I (pp. 83–96). Retrieved from http://www.nber.org/chapters/c1767.pdf
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Patrinos, H. A., & Psacharopoulos, G. (2010). Returns to education in developing countries. International Encyclopedia of Education, 305–312. https://doi.org/10.1016/B978-0-08- 044894-7.01216-1
Psacharopoulos, G., & Patrinos, H. A. (2018). Returns to investment in education: a decennial review of the global literature. Education Economics, 26(5), 445–458. https://doi.org/10.1080/09645292.2018.1484426
Purnastuti, L., Miller, P., & Salim, R. (2011). Economic returns to schooling in a less developed country: evidence for Indonesia. International Conference on Applied Economics, 495–502.
Purnastuti, L., Miller, P. W., & Salim, R. (2013). Declining rates of return to education: Evidence for Indonesia. Bulletin of Indonesian Economic Studies, 49(2), 213–236. https://doi.org/10.1080/00074918.2013.809842
Purnastuti, L., Salim, R., & Joarder, M. A. M. (2015). The returns to education in Indonesia: Post reform estimates. The Journal of Developing Areas, 49(3), 183–204.
https://doi.org/10.1353/jda.2015.0174
Romele, L., & Purgailis, M. (2013). Estimation of Internal Rate of Return (IRR) to Investments in Education in Latvia. International Journal of Social Science and Humanity, (7), 1–4. https://doi.org/10.7763/ijssh.2013.v3.180
Sakellariou, C. (2003). Rates of return to investments in formal and technical/vocational education in Singapore. Education Economics, 11(1), 73–88. https://doi.org/10.1080/09645290210127525
Schultz, T. W. (1961). Schultz61-Human Capital.Pdf. American Economic Review, 51(1), 1–17.
Setiawan, B. (2010). Efek Diploma dan Pengalaman Kerja pada Upah dan Jam Kerja di Indonesia.
Universitas Indonesia.
Spence, M. (1973). Job Market Signalling. The Quarterly Journal of Economics, 87(3), 355–374. https://doi.org/10.1055/s-2004-820924
Stiglitz, J. E. (1975). The Theory of “Screening,” Education, and The Distribution of Income.
American Economic Review, 65(3), 283–300.
Takasaki, Y. (2017). Do Natural Disasters Decrease the Gender Gap in Schooling? World Development, 94, 75–89. https://doi.org/10.1016/j.worlddev.2016.12.041
Undang-Undang Republik Indonesia Nomor 20 Tahun 2003 Tentang Sistem Pendidikan Nasional. , 14 § (2003).
Antam. (2018). Harga Logam Mulia Home. Retrieved from http://www.antam.com/index.php?option=com_content&task=view&id=276&Itemid=140
Antelius, J. (2000). Sheepskin effects in the returns to education: evidence on Swedish data. FIEF Working Paper Series, 69(158), 16. Retrieved from http://ideas.repec.org/p/hhs/fiefwp/0158.html
Arraes, R. de A. e., Menezes, F. L. S., & Simonassi, A. G. (2014). Earning differentials by occupational categories: Gender, race and regions. EconomiA, 15(3), 363–386. https://doi.org/10.1016/j.econ.2014.07.001
Behrman, J. R., & Deolalikar, A. B. (1993). Unobserved Household and Community Heterogeneity and the Labor Market Impact of Schooling: A Case Study for Indonesia. Economic Development and Cultural Change, 41(3), 461–488. https://doi.org/10.1086/452028
BI. (2018). Laporan Tahunan Bank Indonesia. Retrieved from https://www.bi.go.id/id/publikasi/laporan-tahunan/bi/Default.aspx
Borjas, G. J. (2015). Labor Economics. In The Economics of Human Systems Integration: Valuation of Investments in People’s Training and Education, Safety and Health, and Work Productivity (7th ed.). https://doi.org/10.1002/9780470642627.ch5
BPS RI. (2018). Keadaan Angkatan kerja di Indonesia. BPS RI.
Cooray, A., & Potrafke, N. (2011). Gender inequality in education: Political institutions or culture and religion? European Journal of Political Economy, 27(2), 268–280. https://doi.org/10.1016/j.ejpoleco.2010.08.004
Deolalikar, A. B. (1993). Board of Regents of the University of Wisconsin System Gender Differences in Training , Capital , and Wages. The Journal of Human Resource, 28(4), 899– 932.
Dumauli, M. T. (2015). Estimate of the private return on education in Indonesia: Evidence from sibling data. International Journal of Educational Development, 42, 14–24. https://doi.org/10.1016/j.ijedudev.2015.02.012
Ehrenberg, R. G., & Smith, R. S. (2012). Worker Mobility: Migration, Immigration, and Turnover (Chapter 10). In Modern Labor Economics. Theory and Public Policy. 11 th Edition.
El-Hamidi, F. (2006). General or Vocational Schooling? Evidence on School Choice, Returns, and “Sheepskin” Effects from Egypt 1998. The Journal of Policy Reform, 9(2), 157–176. https://doi.org/10.1080/13841280600772861
Fattah, N., & Abubakar. (2013). ANALISIS BIAYA INVESTASI PENDIDIKAN DAN PERSONAL SISWA DI KOTA BANDUNG. Paedagogia, 16(2), 177–186.
Heckman, J. J. (1979). Sample Selection Bias as a Specification Error. Econometrica, 47(1), 153– 161.
Hendajany, N., Widodo, T., & Sulistyaningrum, E. (2016). HUMAN CAPITAL VERSUS THE SIGNALING HYPOTHESES : THE CASE OF INDONESIA Faculty of Economics ,
Universitas Sangga Buana YPKP Bandung Faculty of Economics and Business , Universitas Gadjah Mada Faculty of Economics and Business , Universitas Gadjah Mada. Journal of Indonesian Economy and Business, 31(2), 192–207.
Hendajany, N., Widodo, T., & Sulistyaningrum, E. (2017). Perkembangan Tingkat Pengembalian Investasi Pendidikan Antar-Provinsi : Indonesia Family Life Survey 1993 – 2014 Evolution Returns to Education Across Provinces : Indonesia Family Life Survey Pendahuluan. Jurnal EKonomi Dan Pembangunan Indonesia, 17(1), 44–57.
Hungerford, T., & Solon, G. (1987). Sheepskin Effects in the Returns to Education. The Review of Economics and Statistics, 69(1), 175–177.
ILO. (2017). Global Wage Report 2016/17: Wage inequality in the workplace. In Just Labour: A Canadian Journal of Work and Society. Retrieved from http://www.ilo.org/wcmsp5/groups/public/---dgreports/---dcomm/--- publ/documents/publication/wcms_537846.pdf
Kemendikbud. (2018). Rencana Kerja dan Anggaran Kementerian dan Lembaga (RKAKL) dan Daftar Isian Penggunaan Anggaran (DIPA) Kementerian Pendidikan dan Kebudayaan (Kemendikbud). Retrieved from https://www.kemdikbud.go.id/main/tentang-kemdikbud/rkakl- dan-dipa
Magdalyn, A. (2013). The Rate of Returns to Education : The Case of Indonesia. (August).
Mahirda, K., & Wahyuni, H. (2017). Returning to General and Vocational High-Schools in Indonesia. Review of Economic and Business Studies, 9(2), 9–28. https://doi.org/10.1515/rebs-
2016-0031
McConnell, C. R., Brue, S. L., & Macpherson, D. A. (2017). Contemporary Labor Economics. https://doi.org/10.1002/pros.20609
Meer, J. (2007). Evidence on the returns to secondary vocational education. Economics of Education Review, 26(5), 559–573. https://doi.org/10.1016/j.econedurev.2006.04.002
Mincer, J. (1974). The Human Capital Earnings Function. In Schooling, Experience, and Earnings: Vol. I (pp. 83–96). Retrieved from http://www.nber.org/chapters/c1767.pdf
Mustofa. (2011). RETURN TO EDUCATION TENAGA KERJA DI INDONESIA: ANALISIS DATA
IFLS 2000 DAN 2007. Universitas Gajah Mada.
Nurteta, S., Handayani, D., & Indrayanti, R. (2017). Dynamics of return on investment for highly educated workers. Competition and Cooperation in Economics and Business, 435–445. https://doi.org/10.1201/9781315225227
Pasay, N. H. A., Handayani, D., & Setiawan, B. (2015). Sheepskin and Working Experience Effects on Wage in Indonesia: The Importance of Signalling. Economics and Finance in Indonesia, 59(2), 117. https://doi.org/10.7454/efi.v59i2.60
Patrinos, H. (2016). Estimating the return to schooling using the Mincer equation. IZA World of Labor, (July), 1–11. https://doi.org/10.15185/izawol.278
Patrinos, H. A., & Psacharopoulos, G. (2010). Returns to education in developing countries. International Encyclopedia of Education, 305–312. https://doi.org/10.1016/B978-0-08- 044894-7.01216-1
Psacharopoulos, G., & Patrinos, H. A. (2018). Returns to investment in education: a decennial review of the global literature. Education Economics, 26(5), 445–458. https://doi.org/10.1080/09645292.2018.1484426
Purnastuti, L., Miller, P., & Salim, R. (2011). Economic returns to schooling in a less developed country: evidence for Indonesia. International Conference on Applied Economics, 495–502.
Purnastuti, L., Miller, P. W., & Salim, R. (2013). Declining rates of return to education: Evidence for Indonesia. Bulletin of Indonesian Economic Studies, 49(2), 213–236. https://doi.org/10.1080/00074918.2013.809842
Purnastuti, L., Salim, R., & Joarder, M. A. M. (2015). The returns to education in Indonesia: Post reform estimates. The Journal of Developing Areas, 49(3), 183–204.
https://doi.org/10.1353/jda.2015.0174
Romele, L., & Purgailis, M. (2013). Estimation of Internal Rate of Return (IRR) to Investments in Education in Latvia. International Journal of Social Science and Humanity, (7), 1–4. https://doi.org/10.7763/ijssh.2013.v3.180
Sakellariou, C. (2003). Rates of return to investments in formal and technical/vocational education in Singapore. Education Economics, 11(1), 73–88. https://doi.org/10.1080/09645290210127525
Schultz, T. W. (1961). Schultz61-Human Capital.Pdf. American Economic Review, 51(1), 1–17.
Setiawan, B. (2010). Efek Diploma dan Pengalaman Kerja pada Upah dan Jam Kerja di Indonesia.
Universitas Indonesia.
Spence, M. (1973). Job Market Signalling. The Quarterly Journal of Economics, 87(3), 355–374. https://doi.org/10.1055/s-2004-820924
Stiglitz, J. E. (1975). The Theory of “Screening,” Education, and The Distribution of Income.
American Economic Review, 65(3), 283–300.
Takasaki, Y. (2017). Do Natural Disasters Decrease the Gender Gap in Schooling? World Development, 94, 75–89. https://doi.org/10.1016/j.worlddev.2016.12.041
Undang-Undang Republik Indonesia Nomor 20 Tahun 2003 Tentang Sistem Pendidikan Nasional. , 14 § (2003).
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Published
2019-09-25
How to Cite
Amalia, N., & Sugiharti, L. (2019). DEVELOPMENT OF EDUCATION RETURN RATE IN EAST JAVA 2015 AND 2018. East Java Economic Journal, 3(2), 247–268. https://doi.org/10.53572/ejavec.v3i2.29
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