| Summary: | This study purposes: (1) to determine the social economic factors that
influence the schooling probability population aged 7-15 years, (2) to determine
the level of responsiveness the schooling probability in changes of education
costs for households, and (3) to determine the level of willingness to pay (WTP)
for education to households in D.I. Yogyakarta Province in 2009.
Using data Susenas 2009, this study used logistic models to determine the
factors that influence the schooling probability population aged 7-15 years. To
determine the response of households to the schooling probability due to changes
in education cost calculated by elasticity.
While the level of willingness to pay for education to households is
calculated by Compensating Variation (CV) approach. WTP calculating by CV
approach had ever been done by Gertler and Glewwe (1989) and Saqib (2004).
Based on the logistic model, the probability of schooling population aged 7-
15 years on primary education in D.I.Yogyakarta Province is influenced by social
economic factors such as: gender and education of household�s head, school
distance, age of children, internet access, education cost, and interaction between
education cost with household income.
By simulating the change of education cost, the elasticity of the schooling
probability will be positive when education subsidies is given. It means that if the
education cost increase so the probability of schooling will increase too. In
contrary, if the subsidized tuition fees waived so elasticity value becomes
negative. It means the increasing education cost will be followed by decreasing
schooling probability. On average, when subsidy program was removed, so
schooling probability population aged 7-15 years will decrease 0.07 percent.
WTP calculation results with CV approach which is specified by income
strata, region, and job of household�s head, showed that subsidy of education fee
program will be positive on WTP value. Removal subsidy followed by increasing
of the education cost will cause negative value on WTP.
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