Education expansion, the Kuznetsian tension, and inequality: The case of Indonesia

Arief Anshory Yusuf, Martin D. Siyaranamual and Andy Sumner

No wp-2025-50, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

Abstract: This paper explores the impact of education expansion on structural transformation and income inequality in Indonesia, contextualized within the Kuznetsian framework of economic development. Using a natural policy experiment from the 1978-1979 extension of the school year, we apply a regression discontinuity design (RDD) to establish the causal relationship between increased education and labour shifts from agriculture to non-agricultural sectors.

Keywords: Kuznets; Structural transformation; Inequality; Indonesia (search for similar items in EconPapers)
Date: 2025
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