_ANNEX 7 TEACHER EARNINGS IN INDONESIA: ECONOMETRIC ANALYSIS_ Average Monthly Earnings and Hours Worked by Teachers and Non-Teachers by Level of Education

|Teacher’s Level of|Average<br>|monthly ear<br>|nings (000 R<br>|upiah)<br>|Av<br>|erage hours<br>|worked per we<br>|ek<br>|
|---|---|---|---|---|---|---|---|---|
|Education|Not<br>teacher|Teacher<br>not<br>primary|Primary<br>school<br>teacher|Total<br>Paid<br>Workers|Not<br>teacher|Teacher<br>not<br>primary|Primary<br>school<br>teacher|Total<br>Paid<br>workers|
|Less than primary|445.5<br>|||445.5<br>|46<br>|||46<br>|
||(294.4)|||(294)|(16)|||(16)|
|Primar|528.4|||528.4|48|||48|
|y|(381)|||(381)|(14)|||(14)|
|Junior secondary|643.4<br>|||643.4<br>|48<br>|||48<br>|
||(401)|||(401.1)|(12)|||(12)|
|Senior secondary|920.0<br>|621.6<br>|1,062.7<br>|917.4<br>|46<br>|30<br>|34<br>|45<br>|
||(671)|(519)|(778)|(675.3)|(10)|(12)|(8.5)|(11)|
|Diploma I and II|1,147.7|1,070.1|1,220.4|1,168|43|32|34|36|
||(1,250)|(1,206)|(410)|(933.9)|(12)|(9)|(7)|(10)|
|Academy/Dipl III|1,441.7|1,298.1|1,143.4|1,392.2|44|35|36|42|
||(1,131)|(1,867)|(434)|(1,227)|(9)|(10)|(7)|(10)|
|University/ Dipl IV|1,772.1|1,1432.7|1,160.1|1,536|43|34|34|39|
||(1,856)|(645.2)|(502)|(1,540.9)|(9)|(10)|(8)|(11)|
|Total|816.5|1,033.2|1,139.3|841.9|47|33|34|46|
||(796.7)|(953.8)|(605)|(801)|(12)|(11)|(8)|(13)|
|Observations|35,252|1,804|1,615|38,671|35,252|1,804|1,615|38,671|

_Source:_ World Bank staff calculations based on data from Sakernas 2004. _Note:_ Standard deviation in parentheses. Blank spaces indicate that there are no teachers with less than senior secondary education.

Difference in Earnings: Sample of Paid Workers with Secondary Schooling or More Education (%)

|_Dependent variable log of_|**2000 (Filme**<br>**Sample: All paid**<br> **(public andpriva**<br>_monthly earnings_|**r 2002)**<br>**workers**<br>**te sectors)**<br>_wages_|**Sample: Tea**<br>**(public sect**|**2004 (World**<br>**chers and oth**<br>**or)**|**Bank 2006)**<br>**er civil serva**|**nts**|
|---|---|---|---|---|---|---|
|Teacher|-0.18<br>(9.25)**||-0.21<br>(-20.79)**||-26.09<br>(-0.30)||
|Teacher primary school||-0.025||-0.06||-17.96|
|||(1.14)||(9.09)**||(-4.29)|
|Teacher not primary school||-0.34<br>(13.19)**||-0.33<br>(-16.16)**||-32.22<br>(-8.52)|
|Civil servants (excluding|||24.33||||
|teachers)|||(5.89)**||||
|Age|.06|0.061|0.07|0.07|18.33|17.25|
||(15.49)**|(15.47)**|(33.24)**|(32.73)**|(23.43)|(22.09)|
|Age square|-0.00|-0.00|-0.00|-0.001|-0.16|-0.15|
||(7.98)**|(8.11)**|(-21.04)**|(-20.71)**|(-18.14)|(-17.40)|
|Male|0.14|0.15|0.18|0.18|12.36|12.73|
||(12.32)**|(13.03)**|(21.84)**|(22.37)**|(5.41)|(5.62)|
|Urban|0.12|0.14|0.14|0.15|4.71|6.74|
||(7.10)**|(7.88)**|(17.55)**|(18.51)**|(2.12)|(3.02)|
|Educ. Diploma I & II|0.32|0.27|0.49|0.42|29.27|27.48|
||(15.26)**|(12.86)**|(22.51)**|(19.74)**|(8.8)|(8.39)|
|Educ. Academy Diploma III|0.33|0.36|0.59|0.61|30.91|36.67|
||(15.92)**|(16.96)**|(30.81)**|(31.64)**|(7.04)|(8.16)|
|Educ. University Diploma IV|0.37|0.42|0.65|0.70|32.52|41.27|
||(18.71)**|(20.58)**|(46.93)**|(49.43)**|(11.06)|(13.09)|
|Constant|11.67|11.67|11.76|11.78|9.67|9.83|
||(164.24)|(165.46)|(344.00)**|(346.11)**|(63.37)|(64.47)|
|Observations|18,612|18,612|30,130|30,130|3,655|3,655|
|R squared|0.30|0.31|.27|.28|.37|.39|

_Source:_ World Bank staff estimates.

_Note:_ Robust t-statistics reported in parentheses. ** denotes significance at the 1 percent level. Earnings are defined as wage salary in cash plus wage salary in kind.

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