School Construction in Indonesia

Question 1

Author of the paper?

Answer 1

Duflo (2001)

Question 2

The experiment:

Answer 2

INPRES program. 61,000 primary schools built between 1973-74 and 1978-79.
More than one school per 500 children.
More schools were built in areas with lower attainment and lower wages.

Question 3

Effects?

Answer 3

Educational attainment increased more in regions that received more schools as did their wages (3-5%).
An average increase of 0.25-0.4 years of education.
Probability that an effected child would complete primary school increased by 12%

Question 4

The program increased average schooling mainly through increasing primary schooling…

Answer 4

Only 1.5% of the sample is estimated to have been induced by the program to complete school past the 6th grade.

Question 5

Potential issues of omitted variable bias as result of omitted family and community background variables?

Answer 5

Possibly, BUT… the 2SLS estimates of returns to education in developing countries are very similar and not statistically different from the OLS estimates suggesting an upward bias is unlikely.