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Development in Education Sector: Are the Poor Catching Up?


  • Mohamad Fahmi

    () (Department of Economics, Padjadjaran University)

  • Ben Satriatna

    () (Department of Economics, Padjadjaran University)


We use The National Socioeconomic Survey (SUSENAS) data from 1992 to 2012, to describe the condition of education development in Indonesia before and after the Reform Era. Historical data on education of Indonesia shows that this country has made a remarkable achievement in education development, which is indicated by a significant improvement on several education indicators. However, 1997-1998 Asian crisis is believed had slowed down the development of education sector in Indonesia. Three indicators areused in this study to measure the performance of education development, which are yearly schooling, net enrollment rate, and literacy rate. We found the gap of years of school between gender, region and income group is getting narrowed in the reform era. The net enrollment rate of all level of education also improved between 1992 and 2012. The gap between gender, region and income group also tends to be narrowed. However, we find that in several conditions the gap tends to be widened after the crisis. First case is between urban and rural people at elementary school. Second case is between income groups at elementary school. Third is between male and female at senior high school. Finally, the case is between income groups at tertiary education level. Literacy rate indicator also shows an improvement. The gap between different groups of people is also getting narrowed, except the gap between the rich and the poor. It tends to be widened after the crisis. The last indicator which is dropout rate also shows an improvement without interrupted by crisis. However, this is only happened at elementary school level. For the other level, the condition happened in different way. The gap between different groups of people is also narrowed after the reform era.

Suggested Citation

  • Mohamad Fahmi & Ben Satriatna, 2013. "Development in Education Sector: Are the Poor Catching Up?," Working Papers in Economics and Development Studies (WoPEDS) 201315, Department of Economics, Padjadjaran University, revised Jul 2013.
  • Handle: RePEc:unp:wpaper:201315

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    References listed on IDEAS

    1. 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.
    2. Digdowiseiso, Kumba, 2010. "Measuring gini coefficient of education: the Indonesian cases," MPRA Paper 19865, University Library of Munich, Germany.
    3. Arze del Granado, F. Javier & Fengler, Wolfgang & Ragatz, Andy & Yavuz, Elif, 2007. "Investing in Indonesia's education : allocation, equity, and efficiency of public expenditures," Policy Research Working Paper Series 4329, The World Bank.
    4. Daniel Suryadarma & Wenefrida Widyanti & Asep Suryahadi & Sudarno Sumarto, 2006. "From Access to Income : Regional and Ethnic Inequality in Indonesia," Development Economics Working Papers 22547, East Asian Bureau of Economic Research.
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    Cited by:

    1. Andy Sumner, 2014. "Who are likely to be the future poor in Indonesia? Evidence on primary school non-completion from six rounds of the Demographic and Health Survey, 1991-2012," Working Papers in Economics and Development Studies (WoPEDS) 201406, Department of Economics, Padjadjaran University, revised May 2014.

    More about this item


    Education; Poverty; Indonesia;

    JEL classification:

    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy

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