Universal Journal of Educational Research Vol. 9(1), pp. 202 - 207
DOI: 10.13189/ujer.2021.090122
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Spatial Disparity of Rate of Return on Education in Indonesia and Local Spillover Impact in Metropolitan Areas

Yusuf Faisal Martak ^*, Chotib , Renny Nurhasana
Urban Studies Program, School of Strategic and Global Studies, Universitas Indonesia, Central Jakarta, 10430, Indonesia

ABSTRACT

The types of inequality problems in Indonesia are very diverse, one of which is the rate of return on investment in education. To date, this problem has not been resolved by the government. The existence of this imbalance is thought to have a negative effect on the level of welfare of an area where the rate of return is relatively lower. This study aims to see the magnitude of the rate of return on education investment for each district and city in Indonesia. In addition, an analysis of the spatial effect of returns on education investment is also carried out on the level of welfare of an area in adjacent areas. Using the Mincer model to measure the rate of return for each region, the results show that the rate of return on investment in education in all districts and cities in Indonesia varies widely, ranging from 1% to 11%. Also, spatial analysis using the Spatial Autoregressive model shows that any increase in the percentage of return on investment in education in a certain area will decrease the level of welfare in the surrounding area. The proper regulations specifically related to equality of benefit after getting the education and the ease of migration are needed to overcome each region's negative spillover effect.

KEYWORDS
Return on Investment in Education, Inequality, Disparity, Spillover Effect, Spatial Impact

Cite This Paper in IEEE or APA Citation Styles
(a). IEEE Format:
[1] Yusuf Faisal Martak , Chotib , Renny Nurhasana , "Spatial Disparity of Rate of Return on Education in Indonesia and Local Spillover Impact in Metropolitan Areas," Universal Journal of Educational Research, Vol. 9, No. 1, pp. 202 - 207, 2021. DOI: 10.13189/ujer.2021.090122.

(b). APA Format:
Yusuf Faisal Martak , Chotib , Renny Nurhasana (2021). Spatial Disparity of Rate of Return on Education in Indonesia and Local Spillover Impact in Metropolitan Areas. Universal Journal of Educational Research, 9(1), 202 - 207. DOI: 10.13189/ujer.2021.090122.