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Education inequality, economic growth, and income inequality: Evidence from Indonesia, 1996-2005

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  • Digdowiseiso, Kumba

Abstract

This paper examines the determinants of economic growth, income inequality, and their relationship in the context of education inequality. The econometric results from a cross-section analysis of 23 provinces in the period of 1996-2005 indicate that a higher level of human capital and the relative dispersion of human capital have a disequalizing effect on the income distribution. It also confirms that economic growth has strongly and significantly equalizing effect on the income distribution, supporting the complementarity relationship between equity and growth. In addition, human capital investment contributes significantly to the growth of economy. Therefore, in a bid to achieve egalitarian society with a more equitable distribution of income, economic policies should be more targeted at not only more education but also equal access to education.

Suggested Citation

  • Digdowiseiso, Kumba, 2009. "Education inequality, economic growth, and income inequality: Evidence from Indonesia, 1996-2005," MPRA Paper 17792, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:17792
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    Cited by:

    1. Cong Minh Huynh & Nam Hoai Tran, 2023. "Financial development, income inequality, and institutional quality: A multi-dimensional analysis," Cogent Economics & Finance, Taylor & Francis Journals, vol. 11(2), pages 2242128-224, June.
    2. Yu, Nannan & Yu, Bo & de Jong, Martin & Storm, Servaas, 2015. "Does inequality in educational attainment matter for China's economic growth?," International Journal of Educational Development, Elsevier, vol. 41(C), pages 164-173.
    3. Dobdinga C. Fonchamnyo & Nubonyin Hilda Fokong, 2017. "Educational Gender Gap, Economic Growth and Income Distribution: An Empirical Study of the Interrelationship in Cameroon," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 9(3), pages 168-176, March.
    4. Claudia Andreea Urean, 2017. "The Impact Of Income Inequality And Educational Inequality On Economic Growth - A Literarure Review," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 4, pages 59-65, August.
    5. Doddy Ismunandar Bahari & Hermanto Siregar & Sahara Sahara & Handewi Purwati Saliem Rachman, 2019. "Impact of Agricultural Sectors and Income Inequality in Rural Toward Role of Public Education in Decreasing Educational Inequality in Indonesia," International Journal of Economics and Financial Issues, Econjournals, vol. 9(1), pages 151-159.
    6. Koh, Sharon G. M. & Lee, Grace H. Y. & Siah, Audrey K. L., 2022. "The Resurgence of Income Inequality in Asia-Pacific: The Role of Trade Openness, Educational Attainment and Institutional Quality," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 56(3), pages 11-27.

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    More about this item

    Keywords

    Education; Growth; Inequality; and Indonesia;
    All these keywords.

    JEL classification:

    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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