 The impact of education on inequality in a decentralized IndonesiaJournal of the Asia Pacific Economy, 2024, vol. 29, issue 4, 1995-2006 Abstract: The main objective of this paper is to clarify the impact of education on income inequality in a decentralized Indonesia. This paper uses Indonesian provincial-level data from 2001 to 2018 and dynamic panel estimation techniques to deal with the estimation’s potential persistence and endogeneity problems. The result provides evidence that the higher level of fiscal decentralization, the weaker the effect of schoolyears on income inequality. Fiscal decentralization moderates the positive relationship between schoolyears and income inequality such that the relationship is weakened when the level of fiscal decentralization is higher and stronger when the level of fiscal decentralization is lower. Fiscal decentralization may enable the local government to improve its capacity to reduce the income inequality increases caused by improved educational outcomes. This paper proposes a set of policy recommendations for the government to alleviate the effect of education outcomes on income inequality using fiscal decentralization. Date: 2024 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:taf:rjapxx:v:29:y:2024:i:4:p:1995-2006 Ordering information: This journal article can be ordered from DOI: 10.1080/13547860.2023.2229653 Access Statistics for this article Journal of the Asia Pacific Economy is currently edited by Leong Liew More articles in Journal of the Asia Pacific Economy from Taylor & Francis Journals |
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