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Title: Return to education and education mismatch in Indonesia
Author: Mugijayani, Widdi
ISNI:       0000 0004 9347 6269
Awarding Body: Cardiff University
Current Institution: Cardiff University
Date of Award: 2020
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This thesis aims to examine the effects of education expansion on labour market outcomes in the waged sector in Indonesia between 2000 and 2014 (the conditions before and after the education reform) using the Indonesia Family Life Survey (IFLS) data. Chapter 3 finds the return to education increases with education level based on Mincer wage equation with OLS model. However, the return to education tends to decline for most education levels during the period of education expansion, consistent with an increase in the supply of educated labour. By sector, the return to education is generally higher in the public sector than in the private sector, possibly due to the lack of competition in the former. The findings are robust to accounting for the endogeneity of education and selection into the labour market. Chapter 4 analyses both undereducation and overeducation resulting from education mismatch. It is found that the mismatch increases with the main driver being the increase of undereducation between the periods, based on Realised Match (RM) – mode and mean. This study also finds that education mismatch is determined by age, sector and firm size based on the Multinomial Logit (MNL) model; consistent with the Assignment Models. Yet, the determinants are sensitive to the different methods used, the sector/gender and the periods. Chapter 5 finds both overeducation and undereducation incidences affect the labour wages, based on the Overeducation–Required–Undereducation (ORU) model (Duncan and Hoffman, 1981) with several panel methods. The return to one year of surplus schooling is the same with the return to an additional year of required schooling, and the return to one year of deficit schooling is negative and significant with the absolute value lower than the return to an additional year of required schooling. The results are sensitive to accounting for unobserved individual heterogeneity (fixed effects).
Supervisor: Not available Sponsor: Not available
Qualification Name: Thesis (Ph.D.) Qualification Level: Doctoral
EThOS ID:  DOI: Not available