IDEAS home Printed from https://ideas.repec.org/p/inq/inqwps/ecineq2016-397.html
   My bibliography  Save this paper

Opportunities in education: are factors outside individual responsibility really persistent? Evidence from Indonesia, 1997-2007

Author

Listed:
  • Rajius Idzalika

    (University of Goettingen, Germany)

  • Maria C. Lo Bue

    (University of Verona, Italy)

Abstract

Education is a strong predictor for economic performance. Therefore, educational inequality particularly in opportunity could make significant contribution to earning disparities. Following Ferreira and Gignoux (2014) parametric method, we construct aggregate indices of inequality of educational opportunities for fourteen Indonesian provinces in the years 1997, 2000 and 2007. Our particular and original contribution is to define individual indices of the power of circumstances which measure the strength of the influence that the accumulation of factors outside individual responsibility has in the short and in the long run on individual educational achievements and on earnings. We found that-along the period considered- there has been a declining trend in inequality of educational opportunities but not in all the provinces. Our findings also suggest that parental educational background is the most significant factor for school survival and that the effect that circumstances exert on future individual educational achievements and on early earnings perspectives tend to persist over time, but only to a very small extent. Moreover, our causal model which relates educational budget policy to equality of opportunity shows a negative impact of educational budget for the youngest cohorts, questioning therefore the effectiveness of the allocation of resources to primary and intermediate schools.

Suggested Citation

  • Rajius Idzalika & Maria C. Lo Bue, 2016. "Opportunities in education: are factors outside individual responsibility really persistent? Evidence from Indonesia, 1997-2007," Working Papers 397, ECINEQ, Society for the Study of Economic Inequality.
    • Handle: RePEc:inq:inqwps:ecineq2016-397
    as

    Download full text from publisher

    File URL: http://www.ecineq.org/milano/WP/ECINEQ2016-397.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Lam, David & Schoeni, Robert F, 1993. "Effects of Family Background on Earnings and Returns to Schooling: Evidence from Brazil," Journal of Political Economy, University of Chicago Press, vol. 101(4), pages 710-740, August.
    2. Aaberge, Rolf & Mogstad, Magne & Peragine, Vito, 2011. "Measuring long-term inequality of opportunity," Journal of Public Economics, Elsevier, vol. 95(3), pages 193-204.
    3. Anders Björklund & Markus Jäntti & John Roemer, 2012. "Equality of opportunity and the distribution of long-run income in Sweden," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 39(2), pages 675-696, July.
    4. Francisco H. G. Ferreira & Jérémie Gignoux, 2014. "The Measurement of Educational Inequality: Achievement and Opportunity," The World Bank Economic Review, World Bank, vol. 28(2), pages 210-246.
    5. Lefranc, Arnaud & Pistolesi, Nicolas & Trannoy, Alain, 2009. "Equality of opportunity and luck: Definitions and testable conditions, with an application to income in France," Journal of Public Economics, Elsevier, vol. 93(11-12), pages 1189-1207, December.
    6. Vito Peragine & Flaviana Palmisano & Paolo Brunori, 2014. "Economic Growth and Equality of Opportunity," The World Bank Economic Review, World Bank, vol. 28(2), pages 247-281.
    7. Iatarola, P. & Stiefel, L., 2003. "Intradistrict equity of public education resources and performance," Economics of Education Review, Elsevier, vol. 22(1), pages 69-78, February.
    8. Asadullah, M. Niaz & Yalonetzky, Gaston, 2012. "Inequality of Educational Opportunity in India: Changes Over Time and Across States," World Development, Elsevier, vol. 40(6), pages 1151-1163.
    9. Eric A. Hanushek, 1979. "Conceptual and Empirical Issues in the Estimation of Educational Production Functions," Journal of Human Resources, University of Wisconsin Press, vol. 14(3), pages 351-388.
    10. Arnaud Lefranc & Nicolas Pistolesi & Alain Trannoy, 2008. "Inequality Of Opportunities Vs. Inequality Of Outcomes: Are Western Societies All Alike?," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 54(4), pages 513-546, December.
    11. Anthony Shorrocks, 2013. "Decomposition procedures for distributional analysis: a unified framework based on the Shapley value," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 11(1), pages 99-126, March.
    12. Maarten L. Buis, 2007. "SEQLOGIT: Stata module to fit a sequential logit model," Statistical Software Components S456843, Boston College Department of Economics, revised 25 Oct 2013.
    13. Francisco H. G. Ferreira & Jérémie Gignoux, 2011. "The Measurement Of Inequality Of Opportunity: Theory And An Application To Latin America," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 57(4), pages 622-657, December.
    14. Francisco H.G. Ferreira & Jérémie Gignoux, 2011. "The Measurement of Inequality of Inequality of Opportunity: Theory and an Application to Latin America," Post-Print halshs-00754503, HAL.
    15. François Bourguignon & Francisco Ferreira & Michael Walton, 2007. "Equity, efficiency and inequality traps: A research agenda," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 5(2), pages 235-256, August.
    16. Raquel Fernández & Jordi Gali, 1999. "To Each According to …? Markets, Tournaments, and the Matching Problem with Borrowing Constraints," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 66(4), pages 799-824.
    17. Esther Duflo, 2001. "Schooling and Labor Market Consequences of School Construction in Indonesia: Evidence from an Unusual Policy Experiment," American Economic Review, American Economic Association, vol. 91(4), pages 795-813, September.
    18. repec:hal:pseose:halshs-01030825 is not listed on IDEAS
    19. Fleurbaey, Marc, 2012. "Fairness, Responsibility, and Welfare," OUP Catalogue, Oxford University Press, number 9780199653591.
    20. Andreoli, Francesco & Havnes, Tarjei & Lefranc, Arnaud, 2014. "Equalization of Opportunity: Definitions, Implementable Conditions and Application to Early-Childhood Policy Evaluation," IZA Discussion Papers 8503, Institute of Labor Economics (IZA).
    21. Waltenberg, Fabio D. & Vandenberghe, Vincent, 2007. "What does it take to achieve equality of opportunity in education?: An empirical investigation based on Brazilian data," Economics of Education Review, Elsevier, vol. 26(6), pages 709-723, December.
    22. Mongan, Juan Carlos & Santin, Daniel & Valiño, Aurelia, 2011. "Towards the equality of educational opportunity in the province of Buenos Aires," Journal of Policy Modeling, Elsevier, vol. 33(4), pages 583-596, July.
    23. Paolo Li Donni & Vito Peragine & Giuseppe Pignataro, 2014. "Ex‐Ante And Ex‐Post Measurement Of Equality Of Opportunity In Health: A Normative Decomposition," Health Economics, John Wiley & Sons, Ltd., vol. 23(2), pages 182-198, February.
    24. Daniele Checchi & Vito Peragine, 2010. "Inequality of opportunity in Italy," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 8(4), pages 429-450, December.
    25. World Bank, 2014. "Indonesia - Avoiding the Trap : Development Policy Review 2014," World Bank Publications - Reports 19326, The World Bank Group.
    26. World Bank, 2014. "Indonesia : Avoiding the Trap," World Bank Publications - Reports 18944, The World Bank Group.
    27. Gamboa, Luis Fernando & Waltenberg, Fábio D., 2012. "Inequality of opportunity for educational achievement in Latin America: Evidence from PISA 2006–2009," Economics of Education Review, Elsevier, vol. 31(5), pages 694-708.
    28. World Bank, 2012. "World Development Report 2012 [Rapport sur le développement dans le monde 2012]," World Bank Publications - Books, The World Bank Group, number 4391.
    29. Filmer, Deon & Pritchett, Lant, 1998. "The effect of household wealth on educational attainment : demographic and health survey evidence," Policy Research Working Paper Series 1980, The World Bank.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Monserrat Serio, 2021. "Desempeño educativo de los estudiantes en Argentina: Una mirada a la desigualdad de oportunidades del sistema educativo a partir de su medición y descomposición," Working Papers 86, Red Nacional de Investigadores en Economía (RedNIE).
    2. Paolo Li Donni & Juan Rodríguez & Pedro Rosa Dias, 2015. "Empirical definition of social types in the analysis of inequality of opportunity: a latent classes approach," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 44(3), pages 673-701, March.
    3. John E. Roemer & Alain Trannoy, 2016. "Equality of Opportunity: Theory and Measurement," Journal of Economic Literature, American Economic Association, vol. 54(4), pages 1288-1332, December.
    4. Ferreira, Francisco H. G. & Peragine, Vito, 2015. "Equality of Opportunity: Theory and Evidence," IZA Discussion Papers 8994, Institute of Labor Economics (IZA).
    5. Vito Peragine & Flaviana Palmisano & Paolo Brunori, 2014. "Economic Growth and Equality of Opportunity," The World Bank Economic Review, World Bank, vol. 28(2), pages 247-281.
    6. Flaviana Palmisano & Vito Peragine & Federico Biagi, 2019. "Inequality of opportunity in tertiary education in Europe," JRC Research Reports JRC118543, Joint Research Centre.
    7. ANDREOLI Francesco & HAVNES Tarjei & LEFRANC Arnaud, 2014. "Equalization of opportunity: Definitions, implementable conditions and application to early-childhood policy evaluation," LISER Working Paper Series 2014-12, Luxembourg Institute of Socio-Economic Research (LISER).
    8. Nie, Peng & Ding, Lanlin & Jones, Andrew M., 2020. "Inequality of Opportunity in Bodyweight among Middle-Aged and Older Chinese: A Distributional Approach," IZA Discussion Papers 13421, Institute of Labor Economics (IZA).
    9. X. Ramos & D. Van De Gaer, 2012. "Empirical Approaches to Inequality of Opportunity: Principles, Measures, and Evidence," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 12/792, Ghent University, Faculty of Economics and Business Administration.
    10. Juan C. Palomino & Gustavo A. Marrero & Juan G. Rodríguez, 2019. "Channels of Inequality of Opportunity: The Role of Education and Occupation in Europe," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 143(3), pages 1045-1074, June.
    11. Juan Javier Santos Ochoa, 2016. "Desigualdad de oportunidad en educación e ingresos laborales en México," Graduate theses (Spanish) TESG 004, CIDE, División de Economía.
    12. Gamboa, Luis Fernando & Waltenberg, Fábio D., 2012. "Inequality of opportunity for educational achievement in Latin America: Evidence from PISA 2006–2009," Economics of Education Review, Elsevier, vol. 31(5), pages 694-708.
    13. Marc Fleurbaey & Vito Peragine & Xavier Ramos, 2017. "Ex post inequality of opportunity comparisons," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 49(3), pages 577-603, December.
    14. Pedro Salas-Rojo & Juan Gabriel Rodríguez, 2019. "The distribution of wealth in the U.S. and Spain: the role of socio-economic factors," Working Papers 506, ECINEQ, Society for the Study of Economic Inequality.
    15. Flaviana Palmisano & Federico Biagi & Vito Peragine, 2022. "Inequality of Opportunity in Tertiary Education: Evidence from Europe," Research in Higher Education, Springer;Association for Institutional Research, vol. 63(3), pages 514-565, May.
    16. Vincenzo Carrieri & Apostolos Davillas & Andrew M. Jones, 2023. "Equality of opportunity and the expansion of higher education in the UK," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 69(4), pages 861-885, December.
    17. Ana Suárez Álvarez & Ana Jesús López Menéndez, 2018. "Assessing Changes Over Time in Inequality of Opportunity: The Case of Spain," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 139(3), pages 989-1014, October.
    18. Marc Fleurbaey & Vito Peragine, 2013. "Ex Ante Versus Ex Post Equality of Opportunity," Economica, London School of Economics and Political Science, vol. 80(317), pages 118-130, January.
    19. Niehues, Judith & Peichl, Andreas, 2011. "Lower and Upper Bounds of Unfair Inequality: Theory and Evidence for Germany and the US," IZA Discussion Papers 5834, Institute of Labor Economics (IZA).
    20. Watson, Barry & Kong, Nancy & Phipps, Shelley, 2022. "Dreaming of a Brighter Future? The Impact of Economic Vulnerability on University Aspirations," IZA Discussion Papers 15539, Institute of Labor Economics (IZA).

    More about this item

    Keywords

    Education; Intergenerational Mobility; Inequality of Opportunity; Indonesia;
    All these keywords.

    JEL classification:

    • D39 - Microeconomics - - Distribution - - - Other
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • I29 - Health, Education, and Welfare - - Education - - - Other
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inq:inqwps:ecineq2016-397. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Maria Ana Lugo (email available below). General contact details of provider: https://edirc.repec.org/data/ecineea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.