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Richard Akresh, Illinois Urbana-Champaign Print
Tuesday, 04 June 2019, 14:00 - 15:15

Richard Akresh, Illinois Urbana-Champaign

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

Abstract: In 1973, the Indonesian government began one of the largest school construction programs ever. We use 2016 nationally representative data to examine the long-term and intergenerational effects of additional schooling as a child. We use a difference-in-differences identification strategy exploiting variation across birth cohorts and regions in the number of schools built. Men and women exposed to the program attain more education. As adults, exposed men are more likely to be formal workers, work outside agriculture, and migrate. Women are more likely to migrate and have fewer children. Households with parents exposed to the program have improved living standards and pay more government taxes. Education benefits are transmitted to the next generation. Increased parental education has larger impacts for daughters, particularly if mothers are exposed to school construction. Intergenerational results are driven by changes in the marriage partner’s characteristics, with spouses having more education and improved labor market outcomes. 

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