The issue of whether senior secondary education should be expanded in Indonesia was explored. The analysis was based largely on data from a nationwide tracer study that followed a cohort of primary, lower-secondary, and upper-secondary school leavers for two years after graduation in 1976. The schooling, training, and job experiences of this cohort were used to measure both the effectiveness of senior secondary education and the relative effectiveness of different types of schools. Analysis indicated that the seemingly high unemployment rate for senior secondary school graduates is not evidence of oversupply. Indonesian unemployment is mainly of persons in a long spell of unemployment, most of whom are young persons in transition from school to work. This was a lengthy process for young people wanting to continue their education, take courses, or remain home. Many did little to find a job when they wanted one and were willing to wait for reasonably well paid work. Virtually all senior secondary graduates who wanted work were eventually employed, at pay rates substantially higher than among those with less education. Senior secondary education was found to warrant expansion. Data indicated that the academic senior secondary schools are the best investment. (Data tables are appended.) (YLB)