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The Impact of Schooling Reform on Returns to Education in Malaysia

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  • Ismail, Ramlee

Abstract

The objective of this paper is to examine the impact of education reforms on earnings. One of the significant changes in the Malaysian education system was the schooling reform of 1970 that changed the medium of instruction from the English language to the Malaysian national language. Using data from the Household Income Surveys of 2002 and 2004, this paper updates the private rate of return to education. Applying a homogenous return model, using an ordinary least square (OLS) regression indicates that the private rate of returns to education is close to the world average. Using the Instrumental Variable approach, however, the impact of the schooling reforms indicates that the private rate of return to education is higher than the average.

Suggested Citation

  • Ismail, Ramlee, 2007. "The Impact of Schooling Reform on Returns to Education in Malaysia," MPRA Paper 15021, University Library of Munich, Germany, revised 29 Jan 2008.
    • Handle: RePEc:pra:mprapa:15021
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    File URL: https://mpra.ub.uni-muenchen.de/15021/1/MPRA_paper_15021.pdf
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    References listed on IDEAS

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    Cited by:

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    2. Oancea, Bogdan & Pospisil, Richard & Dragoescu, Raluca, 2017. "The return to higher education: evidence from Romania," MPRA Paper 81720, University Library of Munich, Germany.
    3. Jimenez, Emmanuel & Nguyen, Vy & Patrinos, Harry Anthony, 2012. "Stuck in the middle ? human capital development and economic growth in Malaysia and Thailand," Policy Research Working Paper Series 6283, The World Bank.

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    More about this item

    Keywords

    human capital; instrumental variables; rate of return to education;
    All these keywords.

    JEL classification:

    • A20 - General Economics and Teaching - - Economic Education and Teaching of Economics - - - General
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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