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Lia Yuliana
Universitas Negeri Yogyakarta
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Journal : Eko-Regional: Jurnal Pembangunan Ekonomi Wilayah

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Heterogeneity of Social Returns to Education Across Employees Education Levels in Indonesia Wahyuni, Ribut Nurul Tri; Retnaningsih, Retnaningsih; Yuliana, Lia
Eko-Regional: Jurnal Pembangunan Ekonomi Wilayah Vol 20 No 2 (2025): September 2025
Publisher : Faculty of Economics and Business Universitas Jenderal Soedirman

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.32424/er.v20i2.15782

Abstract

This study estimates the heterogeneity of agglomeration externalities across employees' education levels in Indonesia. This study uses the 2020-2024 microdata and the Instrumental Variable (IV) Heckman model with the historical population density and the number of universities as IVs. The result indicates that social returns to education from the local high-skill labor market, which is a part of agglomeration externalities, are positively significant and higher for high- and medium-skilled employees than for low-skilled employees. This finding demonstrates the efficacy of public education investments, especially Indonesian government policy that can enhance the quantity and quality of university graduates, thereby promoting the transfer of knowledge to all employees and eventually reducing wage inequality between regions.
Co-Authors Aan Komariah Abdullah Taman Abullah Kamal, Siti Soraya Lin Ahmad Darmadji, Ahmad Akalili, Awanis Andriani, Ni Luh Putu Oka Aris Suharyadi Asy’ari, Hasyim Aulia, Asa Safia Bahri, Noradila Binti Shaiful Calvin, Yesdi Christian Chintya Putri, Paramudita Daulay, Irma Khoirot Dinaryant, Ratna Sari Endah Retnowati Endang Mulyatiningsih Firdaus, Fery Muhamad Hutabarat, Nova Sarah Hutagaol, Madeleine Intan Ikhwan, Muh. Saidil Isnaeni, Nurul Khomsatun Jannah, Nita Maghfiratul Kurniasari, Evi Lantip Diat Prasojo Mamengko, Rullyana Puspitaningrum Marhamah Marhamah Marselina, Resya Dwi Mat Nashir, Irdayanti Nurfahila, Shielsilia Amara Nurtanio Agus Purwanto Priadi Surya Rahmawati, Rahmawati Ramadhani, Aqsal Rizky Ramkutih, Pingky Abda Retnaningsih Retnaningsih Risuhawianto, Irwan Rizqiani, Ratu Fani Ruhmi, Farah Sabar Budi Raharjo Sarwati Sarwati, Sarwati Selfia Ladiyance Septariani, Sella Fadia Silviani, Annisa Sugiyono Sugiyono Sukmara, Ganda Susanto, Sarah Sasqia Fitriana Tri Sumarni Vebrianto, Rian Wahyuni, Ribut Nurul Tri Zahruddin