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From Access to Income : Regional and Ethnic Inequality in Indonesia

  • Daniel Suryadarma


  • Wenefrida Widyanti
  • Asep Suryahadi
  • Sudarno Sumarto

This study investigates regional and ethnic inequality in Indonesia from five dimensions : access to education and health facilities, education outcome, health outcome, voice, as well as income and consumption. We believe this is the first comprehensive study that looks at ethnic inequality in Indonesia. We find systematic inequality between urban and rural areas, but not between ethnic groups. Our results indicate that the voiceless rural areas have been left behind by urban areas that have more voice in every indicator. Although we do not establish causation, this finding supports the long-held view inherent among Indonesians. The findings of this study imply that public policy aimed at accelerating rural development is the most effective route to reduce inequality in Indonesia.

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Paper provided by East Asian Bureau of Economic Research in its series Development Economics Working Papers with number 22547.

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Date of creation: Jan 2006
Date of revision:
Handle: RePEc:eab:develo:22547
Contact details of provider: Postal: JG Crawford Building #13, Asia Pacific School of Economics and Government, Australian National University, ACT 0200
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  1. Daniel Mejía & Marc St-Pierre, . "Unequal Opportunities and Human Capital Formation," Borradores de Economia 415, Banco de la Republica de Colombia.
  2. Cecilia Garcia-Penalosa & Eve Caroli & Philippe Aghion, 1999. "Inequality and Economic Growth: The Perspective of the New Growth Theories," Journal of Economic Literature, American Economic Association, vol. 37(4), pages 1615-1660, December.
  3. Daniel Suryadarma & Rima Prama Artha & Asep Suryahadi & Sudarno Sumarto, 2005. "A Reassessment of Inequality and Its Role in Poverty Reduction in Indonesia," Development Economics Working Papers 22543, East Asian Bureau of Economic Research.
  4. Takahiro Akita, 2002. "Regional Income Inequality In Indonesia And The Initial Impact Of The Economic Crisis," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 38(2), pages 201-222.
  5. Quibria, M.G., 2002. "Growth and Poverty: Lessons from the East Asian Miracle Revisited," MPRA Paper 2638, University Library of Munich, Germany.
  6. Deepa Narayan & Robert Chambers & Meera K. Shah & Patti Petesch, 2000. "Voices of the Poor : Crying Out for Change," World Bank Publications, The World Bank, number 13848.
  7. Thomas, Vinod & Wang, Yan & Fan, Xibo, 2001. "Measuring education inequality - Gini coefficients of education," Policy Research Working Paper Series 2525, The World Bank.
  8. Pradhan, Menno & Sahn, David E. & Younger, Stephen D., 2003. "Decomposing world health inequality," Journal of Health Economics, Elsevier, vol. 22(2), pages 271-293, March.
  9. Emmanuel Skoufias & Asep Suryahadi, 2000. "Changes in Household Welfare, Poverty and Inequality During the Crisis," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 36(2), pages 97-114.
  10. Lanjouw, Peter & Pradhan, Menno & Saadah, Fadia & Sayed, Haneen & Sparrow, Robert, 2001. "Poverty, education, and health in Indonesia : who benefits from public spending?," Policy Research Working Paper Series 2739, The World Bank.
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