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Decentralization Policy and Equality: A Theil Analysis of Indonesian Income Inequality

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Author Info
Djoni Hartono () (Department of Economics, University of Indonesia)
Tony Irawan () (Department of Economics,Faculty of Economics and Management; Bogor Agricultural University)

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Abstract

The decentralization policy has been implemented for almost 8 years in Indonesia. One of the main purposes of decentralization policy was to increase economic growth followed by equality. In this paper, we construct gini coefficient and Theil indices of sector income distribution to evaluate the trend of Indonesian income inequality during the implementation of the policy. We will analyze the equality between sector and within sector (e.q. agriculture, industry and services) both in the country and province level data. The output of this study is expected could answer the question whether there is a growth with equality during the implementation of decentralization both between and within sector.

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File URL: http://www.equitablepolicy.org/wpaper/200810.pdf
File Format: application/pdf
File Function: First version, 2008
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Publisher Info
Paper provided by Department of Economics, Padjadjaran University in its series Working Papers in Economics and Development Studies (WoPEDS) with number 200810.

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Length: 19 pages
Date of creation: Oct 2008
Date of revision: Oct 2008
Handle: RePEc:unp:wpaper:200810

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Related research
Keywords: Decentralization; Inequality; Theil indices;

Find related papers by JEL classification:
E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy
I32 - Health, Education, and Welfare - - Welfare and Poverty - - - Measurement and Analysis of Poverty

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Akai, Nobuo & Sakata, Masayo, 2002. "Fiscal decentralization contributes to economic growth: evidence from state-level cross-section data for the United States," Journal of Urban Economics, Elsevier, vol. 52(1), pages 93-108, July. [Downloadable!] (restricted)
  2. Ebel, Robert D. & Yilmaz, Serdar, 2002. "On the measurement and impact of fiscal decentralization," Policy Research Working Paper Series 2809, The World Bank. [Downloadable!]
  3. Neyapti, Bilin, 2006. "Revenue decentralization and income distribution," Economics Letters, Elsevier, vol. 92(3), pages 409-416, September. [Downloadable!] (restricted)
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This page was last updated on 2009-12-17.


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