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After the Big Bang: Estimating the effects of decentralization on educational outcomes in Indonesia through a difference-in-differences analysis

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  • Leer, Jane

Abstract

Proponents of decentralization argue that bringing decisions closer to the people improves school quality and efficiency by ensuring that schools are more responsive to local educational needs. In practice, the effects of decentralization vary substantially, given that the implementation of these reforms relies on local resources and management capacity. In this paper, I estimate the effects of decentralization on educational outcomes in Indonesia using a difference-in-differences model. I find no overall effect on achievement, but a negative effect on teacher effort, particularly in rural areas and among schools with inactive school committees.

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  • Leer, Jane, 2016. "After the Big Bang: Estimating the effects of decentralization on educational outcomes in Indonesia through a difference-in-differences analysis," International Journal of Educational Development, Elsevier, vol. 49(C), pages 80-90.
    • Handle: RePEc:eee:injoed:v:49:y:2016:i:c:p:80-90
    DOI: 10.1016/j.ijedudev.2016.02.005
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    4. Ryota Nakatani & Qianqian Zhang & Isaura Garcia Valdes, 2022. "Fiscal Decentralization Improves Social Outcomes When Countries Have Good Governance," IMF Working Papers 2022/111, International Monetary Fund.
    5. Morita, Tamaki & Yamamoto, Kimika & Managi, Shunsuke, 2018. "The relationship between school-based career education and subsequent incomes: Empirical evidence from Japan," Economic Analysis and Policy, Elsevier, vol. 58(C), pages 70-87.
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    7. Virgi A. Sari, 2019. "Educational Assistance and Education Quality in Indonesia: The Role of Decentralization," Population and Development Review, The Population Council, Inc., vol. 45(S1), pages 123-154, December.
    8. Asim, Minahil & Dee, Thomas S., 2022. "Mobile Phones, Civic Engagement, and School Performance in Pakistan," Economics of Education Review, Elsevier, vol. 89(C).
    9. Yasin, Mohammad Zeqi & Shahab, Hasyim Ali & Nuryitmawan, Tegar Rismanuar & Arini, Hesti Retno Budi & Rumayya, Rumayya, 2020. "Willingness to Pay for Improved Sanitation in Indonesia: Cross-Sectional Difference-in-Differences," MPRA Paper 105070, University Library of Munich, Germany.
    10. Virgi Sari, 2018. "Educational assistance and education quality in Indonesia: The role of decentralization," WIDER Working Paper Series 037, World Institute for Development Economic Research (UNU-WIDER).
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    13. Zhang, Rui & Qie, Xiaotong & Hu, Yanyong & Chen, Xue, 2022. "Does de-capacity policy promote the efficient and green development of the coal industry? –Based on the evidence of China," Resources Policy, Elsevier, vol. 77(C).

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