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Ethnic Horizontal Inequity in Indonesia

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Abstract

For the first time in Indonesia, we jointly analyse several economic statistics and ethnic diversity indicators at national and local levels. Nationally, we find very high levels of economic inequality, measured from household asset values or consumption expenditure. In contrast, the levels of ethnic diversity, while non-negligible, are much lower, whether they reflect fractionalization, polarization, or horizontal inequity based on individual living standards. All horizontal inequity indicators surged after the Asian economic crisis. Horizontal inequity based on education is much lower and decreasing. Finally, we provide tentative explanations of local horizontal inequity in regressions that show a mixed pattern of socioeconomic influences.

Suggested Citation

  • Christophe Muller, 2017. "Ethnic Horizontal Inequity in Indonesia," AMSE Working Papers 1715, Aix-Marseille School of Economics, Marseille, France.
  • Handle: RePEc:aim:wpaimx:1715
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    Keywords

    community activities; ethnic diversity; Inequality; Indonesia;

    JEL classification:

    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
    • H42 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Private Goods
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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