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Schooling and Labor Market Consequences of School Construction in Indonesia: Comment

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  • David Roodman
Abstract
Duflo (2001) exploits a 1970s schooling expansion to estimate the returns to schooling in Indonesia. Under the study's difference-in-differences (DID) design, two patterns in the data--shallower pay scales for younger workers and negative selection in treatment--can violate the parallel trends assumption and upward-bias results. In response, I follow up later, test for trend breaks timed to the intervention, and perform changes-in-changes (CIC). I also correct data errors, cluster variance estimates, incorporate survey weights to correct for endogenous sampling, and test for (and detect) instrument weakness. Weak identification-robust inference yields positive but imprecise estimates. CIC estimates also tilt positive.

Suggested Citation

  • David Roodman, 2022. "Schooling and Labor Market Consequences of School Construction in Indonesia: Comment," Papers 2207.09036, arXiv.org, revised Mar 2024.
    • Handle: RePEc:arx:papers:2207.09036
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    References listed on IDEAS

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    Cited by:

    1. Roodman, David, 2023. "Large-Scale Education Reform in General Equilibrium: Regression Discontinuity Evidence from India - Comment," I4R Discussion Paper Series 70, The Institute for Replication (I4R).

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    More about this item

    JEL classification:

    • I2 - Health, Education, and Welfare - - Education
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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