Working Paper: NBER ID: w25265
Authors: Richard Akresh; Daniel Halim; Marieke Kleemans
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, although women’s effects are concentrated in primary school. As adults, men exposed to the program are more likely to be formal workers, work outside agriculture, and migrate. 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.
Keywords: Education; School Construction; Long-term Effects; Intergenerational Effects; Indonesia
JEL Codes: I21; J13; J62; O15; O22
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Exposure to the school construction program (I24) | Increased educational attainment (I24) |
| Increased educational attainment (I24) | Increased likelihood of formal employment (J68) |
| Increased educational attainment (I24) | Better labor market outcomes (J48) |
| Increased educational attainment (I24) | Improved living standards (I31) |
| Increased educational attainment (I24) | Higher taxes paid (H29) |
| Parents exposed to the school construction program (I24) | Higher educational outcomes for children (I21) |
| Parents exposed to the school construction program (I24) | Changes in marriage market dynamics (J12) |
| Changes in marriage market dynamics (J12) | Higher educational outcomes for children (I21) |