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

Takahiro Akita and Heryanah ()
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Heryanah: Central Bureau of Statistics Indonesia

No EMS_2013_18, Working Papers from Research Institute, International University of Japan

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.

Keywords: educational expansion; expenditure inequality; educational inequality; Kuznets hypothesis; panel data regression; Indonesia (search for similar items in EconPapers)
JEL-codes: I24 I25 O15 (search for similar items in EconPapers)
Pages: 28 pages
Date: 2013-09
New Economics Papers: this item is included in nep-dev, nep-edu and nep-sea
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