The Economics of Teacher Supply in Indonesia
This paper examines the phenomenon of
the over-supply of teachers but shortage of qualified
teachers in Indonesia. Using a theoretical framework of
government-dominated market with government-set wage rate
and demand for teachers, the analysis explores how teacher
supply, particularly the composition of the teaching force
with low or high qualification, would be determined by
current and future public policies. Using 2001 to 2008
Indonesian Labor Force Survey data, the paper further
estimates the potential effect of the most recent teacher
law, which could give college educated teachers a
significant pay increase, on the composition of the
Indonesian teaching force with differentiated education
backgrounds. Using a sample of workers with college
education, the author finds that the relative wage rate of
teachers and that of alternative occupations significantly
influence the decision of college educated workers to become
teachers. It is also found that the wage rate set by the
most recent teacher law would increase the share of teachers
approximately from 16 to 30 percent of the college-educated
labor force. This increase that is due to the new
government-set wage rate, would result in a pupil-teacher
ratio of 24 to 25 pupils per teacher with college education,
but will require a more than 31 percent increase in the wage
bill for teacher salaries. The empirical approach of this
paper is derived from a structural model that takes into
account the endogeneity of the wage rate and corrects for
sample-selection bias due to occupational choice.
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Bibliographic Details
| Main Author: |
Chen, Dandan |
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| Language: | English |
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| Published: |
2009-06-01
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| Subjects: | ABILITY OF TEACHERS,
ACADEMIC ABILITY,
ACADEMIC RESEARCH,
CAREER,
CAREER CHOICE,
CAREERS,
CERTIFIED TEACHERS,
COLLEGE EDUCATION,
COLLEGE GRADUATE,
COLLEGE GRADUATES,
ECONOMICS OF EDUCATION,
EDUCATED LABOR FORCE,
EDUCATED TEACHERS,
EDUCATED WORKERS,
EDUCATION QUALITY,
EDUCATIONAL ATTAINMENT,
EDUCATIONAL QUALITY,
EMPLOYMENT,
ENROLLMENT,
ENROLLMENT RATES,
FAMILY LIFE,
FEMALE GRADUATES,
FEMALE TEACHERS,
FUTURE EDUCATION,
HIGH SCHOOL,
HUMAN DEVELOPMENT,
HUMAN RESOURCES,
JUNIOR SECONDARY,
LABOR FORCE,
LABOUR MARKET,
LEARNING OUTCOMES,
LEARNING PROCESS,
LEVEL OF EDUCATION,
LITERATURE,
MINISTRY OF EDUCATION,
MOBILITY,
NEW ENTRANTS,
NUMBER OF TEACHERS,
OVERSUPPLY OF TEACHERS,
PAPERS,
PARTICIPATION OF WOMEN,
PRIMARY LEVEL,
PRIMARY SCHOOL,
PRIMARY SCHOOL TEACHERS,
PUPIL-TEACHER RATIO,
PUPIL-TEACHER RATIOS,
PUPILS PER TEACHER,
PUPILTEACHER RATIO,
QUALIFIED TEACHERS,
RETENTION OF TEACHERS,
RURAL AREAS,
SALARY INCREASES,
SCHOOL AGE,
SCHOOL SURVEY,
SCHOOL TEACHING,
SCHOOLING,
SCHOOLS,
SECONDARY SCHOOL,
SECONDARY SCHOOL TEACHERS,
SENIOR SECONDARY,
STUDENT LEARNING,
SUPPLY OF GRADUATES,
TEACHER,
TEACHER CANDIDATES,
TEACHER EMPLOYMENT,
TEACHER QUALITY,
TEACHER SALARIES,
TEACHER SHORTAGE,
TEACHER SUPPLY,
TEACHER TRAINING,
TEACHING,
TEACHING ABILITY,
TEACHING FORCE,
TEACHING JOB,
WORKERS, |
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| Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20090622091245
https://hdl.handle.net/10986/4167
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