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Why the Rate of Return of Religious School (Madrasah) is Too Low: The Case in Indonesia

Author

Listed:
  • Elfindri

    (Professor of Human Resource Economics of Department of Economics, Andalas University)

  • Edi Ariyanto

    (SDGs Center and Department of Economics, Andalas University)

  • Sri Maryati

    (SDGs Center and Department of Economics, Andalas University)

  • Delfia T. Sari

    (SDGs Center and Department of Economics, Andalas University)

Abstract

Religious schools (madrasah) in Indonesia have contributed to fulfilling the equity goals of education. Up to this point, studies on the rate of return of madrasah and its relation to general or vocational education remain limited. In contrast to the previous studies that omit madrasah from their analysis, this study pay greater attention to this particular type of education. By adopting the Mincerian model of the human capital and applying the semi-log earnings function to the 2012 data of the National Socioeconomic Survey (SUSENAS) of Indonesia, this study discovers that the rate of return of graduates from madrasah is considerably lower than that of graduates from the equivalent formal general and vocational education. Furthermore, graduates from lower and upper secondary madrasah are unable to increase their income in the labor market. Raising awareness of the quality of madrasah in Indonesia is an important point discussed in this study.

Suggested Citation

  • Elfindri & Edi Ariyanto & Sri Maryati & Delfia T. Sari, 2022. "Why the Rate of Return of Religious School (Madrasah) is Too Low: The Case in Indonesia," Economics and Finance in Indonesia, Faculty of Economics and Business, University of Indonesia, vol. 68, pages 51-61, Juni.
    • Handle: RePEc:lpe:efijnl:202204
    as

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    References listed on IDEAS

    as
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    More about this item

    Keywords

    religious schools; madrasah; education; rate of return;
    All these keywords.

    JEL classification:

    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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