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The roles of location and education in the distribution of economic well-being in Indonesia: hierarchical and non-hierarchical inequality decomposition analyses

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  • Takahiro Akita

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  • Sachiko Miyata

Abstract

This paper analyzes the roles of location (rural and urban sectors) and education in the distribution of economic well-being in Indonesia by employing the hierarchical and non-hierarchical decomposition methods of the Theil indices. This is done by using household expenditure data from the national socio-economic survey (Susenas) in 2008. It shows that there are large expenditure disparities across education levels but that these are more pronounced in the urban sector than the rural sector. When there are differences in educational structure between the rural and urban sectors, the hierarchical decomposition method appears to offer a better approach than the non-hierarchical method. Copyright Springer-Verlag Berlin Heidelberg 2013

Suggested Citation

  • Takahiro Akita & Sachiko Miyata, 2013. "The roles of location and education in the distribution of economic well-being in Indonesia: hierarchical and non-hierarchical inequality decomposition analyses," Letters in Spatial and Resource Sciences, Springer, vol. 6(3), pages 137-150, November.
  • Handle: RePEc:spr:lsprsc:v:6:y:2013:i:3:p:137-150
    DOI: 10.1007/s12076-013-0093-8
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    References listed on IDEAS

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    1. Shorrocks, A F, 1980. "The Class of Additively Decomposable Inequality Measures," Econometrica, Econometric Society, vol. 48(3), pages 613-625, April.
    2. Takahiro Akita & Sachiko Miyata, 2008. "Urbanization, educational expansion, and expenditure inequality in Indonesia in 1996, 1999, and 2002," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 13(2), pages 147-167.
    3. Bourguignon, Francois, 1979. "Decomposable Income Inequality Measures," Econometrica, Econometric Society, vol. 47(4), pages 901-920, July.
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    9. Takahiro Akita, 2003. "Decomposing regional income inequality in China and Indonesia using two-stage nested Theil decomposition method," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 37(1), pages 55-77, February.
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    Cited by:

    1. Takahiro Akita, 2017. "Educational Expansion and the Role of Education in Expenditure Inequality in Indonesia Since the 1997 Financial Crisis," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 130(3), pages 1165-1186, February.

    More about this item

    Keywords

    Inequality; Hierarchical and non-hierarchical decompositions; Theil indices; Urban and rural locations; Education; Indonesia; O15; O18; R12;

    JEL classification:

    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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