We analyse the school participation decision of children between 13 and 18
years in Indonesia using the 1992 SUSENAS household survey. Our focus is on
which household factors determine enrolment and delayed enrolment. We use
the multinomial fixed effect model where the cluster-specific fixed effects
correct for any regional-specific factors that may influence the demand fo
r education. The model is estimated by conditional maximum likelihood. We f
ind that parent's education has a positive effect on enrolment, where the e
ffects are stronger for boys than for girls. On the other hand, literacy of
parents has stronger effects on the girls education than on the boys'. The
model without fixed effects is rejected against the model with fixed effec
ts, Hence, omitting regional variation in the model would have led to biase
d estimates.