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Educational Expansion and Inequality in Indonesia: Testing the Kuznets Hypothesis with Provincial Panel Data

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Abstract

This study analyzes the relationship between the level of educational attainment, educational inequality and expenditure inequality in Indonesia based on a provincial panel data set from 1996-2011 and attempts to test the Kuznets hypothesis for educational expansion. We found that educational inequality decreases as the average level of educational attainment increases. In contrast, expenditure inequality follows an inverted U-shaped pattern with respect to educational expansion and reaches the maximum at around 9-10 years of education. Given the current average educational level, further educational expansion would increase expenditure inequality. However, more equal distribution of education has an equalizing effect.

Suggested Citation

  • Takahiro Akita & Heryanah, 2013. "Educational Expansion and Inequality in Indonesia: Testing the Kuznets Hypothesis with Provincial Panel Data," Working Papers EMS_2013_18, Research Institute, International University of Japan.
  • Handle: RePEc:iuj:wpaper:ems_2013_18
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    File URL: http://www.iuj.ac.jp/workingpapers/index.cfm?File=EMS_2013_18.pdf
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    1. Saith, A., 1983. "Development and distribution : a critique of the cross-country U-hypothesis," ISS Working Papers - General Series 18763, International Institute of Social Studies of Erasmus University Rotterdam (ISS), The Hague.
    2. De Gregorio, Jose & Lee, Jong-Wha, 2002. "Education and Income Inequality: New Evidence from Cross-Country Data," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 48(3), pages 395-416, September.
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    6. Takahiro Akita & Alit Pirmansah, 2011. "Urban Inequality in Indonesia," Working Papers EMS_2011_04, Research Institute, International University of Japan.
    7. Park, Kang H., 1996. "Educational expansion and educational inequality on income distribution," Economics of Education Review, Elsevier, vol. 15(1), pages 51-58, February.
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    More about this item

    Keywords

    educational expansion; expenditure inequality; educational inequality; Kuznets hypothesis; panel data regression; Indonesia;

    JEL classification:

    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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