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Poverty, education, and health in Indonesia : who benefits from public spending?

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  • Lanjouw, Peter
  • Pradhan, Menno
  • Saadah, Fadia
  • Sayed, Haneen
  • Sparrow, Robert

Abstract

The authors investigate the extent to which Indonesia's poor benefit from public and private provisioning of education and health services. Drawing on multiple rounds of SUSENAS household surveys, they document a reversal in the rate of decline in poverty and a slowdown in social sector improvements resulting from the economic crisis in the second half of the 1990s. Carrying out traditional static benefit-incidence analysis of public spending in education and health, the authors find patterns consistent with experience in other countries: spending on primary education and primary health care tends to be pro-poor, while spending on higher education and hospitals is less obviously beneficial to the poor. These conclusions are tempered once one allows for economies of scale in consumption which weaken the link between poverty status and household size. The authors also examine the incidence of changes in government spending. They find that the marginal incidence of spending in both junior and senior secondary schooling is more progressive than what static analysis would suggest, consistent with"early capture"by the non-poor of education spending. In the health sector marginal and average incidence analysis point to the same conclusion: the greatest benefit to the poor would come from an increase in primary health care spending.

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Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 2739.

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Date of creation: 31 Dec 2001
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Handle: RePEc:wbk:wbrwps:2739

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Keywords: Public Health Promotion; Health Monitoring&Evaluation; Health Economics&Finance; Health Systems Development&Reform; Early Child and Children's Health; Health Systems Development&Reform; Health Monitoring&Evaluation; Poverty Assessment; Health Economics&Finance; Achieving Shared Growth;

References

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  1. Psacharopoulos, George, 1994. "Returns to investment in education: A global update," World Development, Elsevier, Elsevier, vol. 22(9), pages 1325-1343, September.
  2. Pradhan, Menno, 1998. "Enrolment and Delayed Enrolment of Secondary School Age Children in Indonesia," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 60(4), pages 413-30, November.
  3. Lanjouw, Peter & Ravallion, Martin, 1999. "Benefit Incidence, Public Spending Reforms, and the Timing of Program Capture," World Bank Economic Review, World Bank Group, World Bank Group, vol. 13(2), pages 257-73, May.
  4. Lanjouw, Peter & Ravallion, Martin, 1995. "Poverty and Household Size," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 105(433), pages 1415-34, November.
  5. Ravallion, Martin & Bidani, Benu, 1993. "How robust is a poverty profile?," Policy Research Working Paper Series 1223, The World Bank.
  6. McMahon, Walter W. & Boediono, Walter W., 1992. "Universal basic education: An overall strategy of investment priorities for economic growth," Economics of Education Review, Elsevier, Elsevier, vol. 11(2), pages 137-151, June.
  7. Coulter, Fiona A E & Cowell, Frank A & Jenkins, Stephen P, 1992. "Equivalence Scale Relativities and the Extent of Inequality and Poverty," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 102(414), pages 1067-82, September.
  8. Emmanuel Skoufias, 1999. "Parental Education and child Nutrition in Indonesia," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, Taylor & Francis Journals, vol. 35(1), pages 99-119.
  9. Heckman, James J, 1990. "Varieties of Selection Bias," American Economic Review, American Economic Association, American Economic Association, vol. 80(2), pages 313-18, May.
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Citations

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Cited by:
  1. World Bank, 2006. "Making the New Indonesia Work for the Poor," World Bank Other Operational Studies 8172, The World Bank.
  2. Mogues, Tewodaj & Petracco, Carly & Randriamamonjy, Josee, 2011. "The wealth and gender distribution of rural services in Ethiopia: A public expenditure benefit incidence analysis," IFPRI discussion papers, International Food Policy Research Institute (IFPRI) 1057, International Food Policy Research Institute (IFPRI).
  3. Menno Pradhan & Fadia Saadah & Robert Sparrow, 2003. "Did the Healthcard Program ensure Access to Medical Care for the Poor during Indonesia's Economic Crisis?," Tinbergen Institute Discussion Papers 03-016/2, Tinbergen Institute.
  4. Anne Goujon & Samir K.C., 2009. "Past and Future of Human Capital in Southeast Asia: From 1970 to 2030," Working Papers, Vienna Institute of Demography (VID) of the Austrian Academy of Sciences in Vienna 0607, Vienna Institute of Demography (VID) of the Austrian Academy of Sciences in Vienna.
  5. Eddy van Doorslaer & Owen O’ Donnell, 2010. "Measurement and Explanation of Inequality in Health and Health Care in Low-Income Settings," Working Papers id:3177, eSocialSciences.
  6. Andy Sumner, 2013. "The Evolution Of Education And Health Poverty During Economic Development:The Case Of Indonesia, 1991–2007," Working Papers in Economics and Development Studies (WoPEDS), Department of Economics, Padjadjaran University 201311, Department of Economics, Padjadjaran University, revised May 2013.
  7. Meliyanni Johar, 2007. "The Impact of the Indonesian Health Card Program: A Matching Estimator Approach," Discussion Papers, School of Economics, The University of New South Wales 2007-30, School of Economics, The University of New South Wales.
  8. World Bank, 2003. "Decentralizing Indonesia : A Regional Public Expenditure Review Overview Report," World Bank Other Operational Studies 14632, The World Bank.
  9. World Bank, 2004. "Timor-Leste : Education Since Independence from Reconstruction to Sustainable Improvement," World Bank Other Operational Studies 15736, The World Bank.
  10. Daniel Suryadarma & Wenefrida Widyanti & Asep Suryahadi & Sudarno Sumarto, 2006. "From Access to Income : Regional and Ethnic Inequality in Indonesia," Development Economics Working Papers 22547, East Asian Bureau of Economic Research.
  11. Martin Ravallion, 2004. "Who is protected from budget cuts?," Journal of Economic Policy Reform, Taylor & Francis Journals, Taylor & Francis Journals, vol. 7(2), pages 109-122.
  12. Balisacan, Arsenio M., 1. "Averting Hunger and Food Insecurity in Asia," Asian Journal of Agriculture and Development, Southeast Asian Regional Center for Graduate Study and Research in Agriculture (SEARCA), Southeast Asian Regional Center for Graduate Study and Research in Agriculture (SEARCA), vol. 1(1).
  13. Landiyanto, Erlangga Agustino, 2009. "The Impact of Health Card Program on Access to Reproductive Health Services: An Indonesian Experience," MPRA Paper 38856, University Library of Munich, Germany.
  14. World Bank, 2002. "Republic of Yemen : Poverty Update, Volume 1. Main Report," World Bank Other Operational Studies 15319, The World Bank.
  15. World Bank, 2002. "Republic of Yemen : Poverty Update, Volume 2. Annexes," World Bank Other Operational Studies 15318, The World Bank.

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