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Poverty, education, and health in Indonesia : who benefits from public spending?

Author

Listed:
  • Lanjouw, Peter
  • Pradhan, Menno
  • Saadah, Fadia
  • Sayed, Haneen
  • Sparrow, Robert

Abstract

The authors investigate the extent to which Indonesia's poor benefit from public and private provisioning of education and health services. Drawing on multiple rounds of SUSENAS household surveys, they document a reversal in the rate of decline in poverty and a slowdown in social sector improvements resulting from the economic crisis in the second half of the 1990s. Carrying out traditional static benefit-incidence analysis of public spending in education and health, the authors find patterns consistent with experience in other countries: spending on primary education and primary health care tends to be pro-poor, while spending on higher education and hospitals is less obviously beneficial to the poor. These conclusions are tempered once one allows for economies of scale in consumption which weaken the link between poverty status and household size. The authors also examine the incidence of changes in government spending. They find that the marginal incidence of spending in both junior and senior secondary schooling is more progressive than what static analysis would suggest, consistent with"early capture"by the non-poor of education spending. In the health sector marginal and average incidence analysis point to the same conclusion: the greatest benefit to the poor would come from an increase in primary health care spending.

Suggested Citation

  • 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.
  • Handle: RePEc:wbk:wbrwps:2739
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    References listed on IDEAS

    as
    1. Pradhan, Menno, 1998. "Enrolment and Delayed Enrolment of Secondary School Age Children in Indonesia," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 60(4), pages 413-430, November.
    2. Ravallion, Martin & Bidani, Benu, 1994. "How Robust Is a Poverty Profile?," World Bank Economic Review, World Bank Group, vol. 8(1), pages 75-102, January.
    3. Lanjouw, Peter & Ravallion, Martin, 1995. "Poverty and Household Size," Economic Journal, Royal Economic Society, vol. 105(433), pages 1415-1434, November.
    4. Lanjouw, Peter & Ravallion, Martin, 1999. "Benefit Incidence, Public Spending Reforms, and the Timing of Program Capture," World Bank Economic Review, World Bank Group, vol. 13(2), pages 257-273, May.
    5. Heckman, James J, 1990. "Varieties of Selection Bias," American Economic Review, American Economic Association, vol. 80(2), pages 313-318, May.
    6. McMahon, Walter W. & Boediono, Walter W., 1992. "Universal basic education: An overall strategy of investment priorities for economic growth," Economics of Education Review, Elsevier, vol. 11(2), pages 137-151, June.
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    8. Emmanuel Skoufias, 1999. "Parental Education and child Nutrition in Indonesia," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 35(1), pages 99-119.
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    Citations

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    Cited by:

    1. repec:eee:wodepe:v:6:y:2017:i:c:p:1-10 is not listed on IDEAS
    2. World Bank, 2003. "Decentralizing Indonesia : A Regional Public Expenditure Review Overview Report," World Bank Other Operational Studies 14632, The World Bank.
    3. Arsenio M Balisacan, 2004. "Averting Hunger and Food Insecurity in Asia," Asian Journal of Agriculture and Development, Southeast Asian Regional Center for Graduate Study and Research in Agriculture (SEARCA), vol. 1(1), pages 39-60, June.
    4. World Bank, 2002. "Republic of Yemen : Poverty Update, Volume 2. Annexes," World Bank Other Operational Studies 15318, The World Bank.
    5. World Bank, 2006. "Making the New Indonesia Work for the Poor," World Bank Other Operational Studies 8172, The World Bank.
    6. Landiyanto, Erlangga Agustino, 2009. "The Impact of Health Card Program on Access to Reproductive Health Services: An Indonesian Experience," MPRA Paper 38856, University Library of Munich, Germany.
    7. Andy Sumner, 2013. "The Evolution Of Education And Health Poverty During Economic Development:The Case Of Indonesia, 1991–2007," Working Papers in Economics and Development Studies (WoPEDS) 201311, Department of Economics, Padjadjaran University, revised May 2013.
    8. World Bank, 2002. "Republic of Yemen : Poverty Update, Volume 1. Main Report," World Bank Other Operational Studies 15319, The World Bank.
    9. Mogues, Tewodaj & Petracco, Carly & Randriamamonjy, Josee, 2011. "The wealth and gender distribution of rural services in Ethiopia: A public expenditure benefit incidence analysis," IFPRI discussion papers 1057, International Food Policy Research Institute (IFPRI).
    10. van Doorslaer, Eddy & O'Donnell, Owen, 2008. "Measurement and Explanation of Inequality in Health and Health Care in Low-Income Settings," WIDER Working Paper Series DP2008/04, World Institute for Development Economic Research (UNU-WIDER).
    11. World Bank, 2004. "Timor-Leste : Education Since Independence from Reconstruction to Sustainable Improvement," World Bank Other Operational Studies 15736, The World Bank.
    12. Martin Ravallion, 2004. "Who is protected from budget cuts?," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 7(2), pages 109-122.
    13. Johar, Meliyanni, 2009. "The impact of the Indonesian health card program: A matching estimator approach," Journal of Health Economics, Elsevier, vol. 28(1), pages 35-53, January.
    14. 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.
    15. Kristiansen, Stein & Santoso, Purwo, 2006. "Surviving decentralisation?: Impacts of regional autonomy on health service provision in Indonesia," Health Policy, Elsevier, vol. 77(3), pages 247-259, August.
    16. Anne Goujon & Samir K.C., 2009. "Past and Future of Human Capital in Southeast Asia: From 1970 to 2030," VID Working Papers 0607, Vienna Institute of Demography (VID) of the Austrian Academy of Sciences in Vienna.
    17. Wawan JUSWANTO, "undated". "Distribution of Government Expenditure and Demand for Education Services: The Case of Indonesia," EcoMod2009 21500047, EcoMod.

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