Rate of Return on Education in Indonesia: The Privilege of A High Economic Group and Urban Areas

This study analyzes the rate of return on education investment for individuals in Indonesia based on residential characteristics (urban/rural) and economic level. Using the Mincer equation, results show that urban areas have a higher average return than rural areas, and the highest economic group (quintile 5) has a return approximately 2 times higher than the lowest group (quintile 1).