Higher level manpower development in Indonesia: Rates of return and embodied technical change

This study consists of basic research on rates of return to higher education in Indonesia. Four different techniques to estimate rates of return are employed: the pure internal rate of return, the Mincer earnings function, the Cobb-Douglas production function, and the nested-CES production function. Several topics relating to rates of return to higher education in Indonesia are also discussed. They include background comparisons of education and research and development in Indonesia, Korea, and Taiwan; embodied technical change; consistency among the four different techniques used to estimate rates of return; diffusion of technology; and policy implications. Further, the estimates of capital stock (both human and non-human) in Indonesia are carried out in this research.