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Decrypted Esther Duflo
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abstract
between 4<:6 and 4<:;/ the indonesian government constructed over 94/333 primar|
schools throughout the countr|1 this is one of the largest school construction programs on
record1 i evaluate the eect of this program on education and wages b| combining dierences
across regions in the number of schools constructed with dierences across cohorts induced
b| the timing of the program1 the estimates suggest that the construction of primar| schools
led to an increase in education and earnings1 children aged 5 to 9 in 4<:7 received 3145 to
314< more |ears of education for each school constructed per 4/333 children in their region
of birth1 using the variations in schooling generated b| this polic| as instrumental variables
for the impact of education on wages generates estimates of economic returns to education
ranging from 91; percent to 4319 percent1 +jel i5/ j64/ o48/ o55,
the question of whether investment in infrastructure increases human capital and reduces
povert| has long been a concern to development economists and polic|makers1 for e{ample/
availabilit| of schooling infrastructure has been shown to be positivel| correlated with completed
schooling or enrollment b| nanc| birdsall +4<;8, in urban bra}il/ dennis detra| +4<;;, and lee
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