Returning to General and Vocational High-Schools in Indonesia

Abstract

Promoting vocational secondary education can be an appealing option for developing countries in order to improve labour market outcomes. The main reason for the promotion of vocational education is the increase of the labour force. The debate regarding the benefit resulted from vocational education, as opposed to general education is far from conclusive. This paper analyses the return to schooling of vocational and general high-schools in Indonesia using Indonesian Family Life Survey (IFLS). The study finds no difference in the returns to schooling between vocational and general high-schools in Indonesia. The findings may imply that the government should focus on promoting general education, especially in the developing countries such as Indonesia, easing the access to higher education, as well as improving the curriculum in vocational education.