Abstract
The returns to education in Indonesia are analysed using Susenas data. The private sector is found to reward education more generously than the public sector, while the latter puts a premium on experience. A casual analysis suggests general sex discrimination against female workers at any given level of education; however, once experience is allowed for, the negative sex differentials become insignificant. Finally, the general returns to education are of the order of 15–17% additional income for each additional year of schooling, which is a very high rate of return compared with other countries.
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