2021
DOI: 10.20885/ejem.vol13.iss2.art6
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Education, skills and labour market outcome in Indonesia: An instrumental variable approach

Abstract: Purpose ─ This study examines the contribution of schooling and skills to earnings. Importantly, this study captures the importance of observing cognitive skills and non-cognitive skills associated with personality traits in determining earnings.Methods ─ A revised Mincer Model serves as a theoretical framework to explain the contribution of schooling and skills to earnings. Using the Indonesian labour data from the 5 th wave of Indonesian Family Life Survey (IFLS), the 2-Stage Least Squares is employed to mea… Show more

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Cited by 5 publications
(2 citation statements)
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“…Researchers' critical overviews of early studies using Mincer's model recognized its power to statistically predict wages (e.g., Heckman et al, 2008). Since then, Mincer's earnings regression model has become the standard research method by labor market economists for the estimation of returns to human capital that include preferences and demographic characteristics of the individuals (see Mulyaningsih et al, 2021).…”
Section: Methodsmentioning
confidence: 99%
“…Researchers' critical overviews of early studies using Mincer's model recognized its power to statistically predict wages (e.g., Heckman et al, 2008). Since then, Mincer's earnings regression model has become the standard research method by labor market economists for the estimation of returns to human capital that include preferences and demographic characteristics of the individuals (see Mulyaningsih et al, 2021).…”
Section: Methodsmentioning
confidence: 99%
“…Since 2002, the number of students in Indonesia has grown by 10 million, which is supported by the increased government funding and decentralization (World Bank, 2020). With greater numbers of individuals attending universities in Indonesia and growing pressure to contribute to the labor market (Lauder & Mayhew, 2020; Mulyaningsih et al, 2021), it is imperative that the infrastructure for mental health support services for students is available.…”
Section: Rapid Increase Of Students In Indonesian Higher Educationmentioning
confidence: 99%