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Distribution of Government Spending on Education in Indonesia

Author

Listed:
  • Mas Jasmin Wika, Gek Sintha
  • Widodo, Tri

Abstract

This paper aims to analyze the benefit incidence of government spending on education sector between each population group (different per capita household consumption groups) that divides the population into sub-group (quintile or deciles) using survey data (IFLS) in Indonesia in 2007. Benefit incidence analysis (BIA) is applied to know who benefit from government spending on education. The result shows that overall government spending on education sector is less progressive; it tends to provide more benefit to middle class and the rich one. The poor receive largest benefit on primary education, while government spending in higher education seems not to be pro-poor which is shown by the less benefit received by those groups. In contrast, the richest receive largest benefit on secondary and higher education. It proves that spending on secondary and higher education are regressive and pro-rich.

Suggested Citation

  • Mas Jasmin Wika, Gek Sintha & Widodo, Tri, 2012. "Distribution of Government Spending on Education in Indonesia," MPRA Paper 79501, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:79501
    as

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    File URL: https://mpra.ub.uni-muenchen.de/79501/1/MPRA_paper_79501.pdf
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    References listed on IDEAS

    as
    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. Mr. Erwin H Tiongson & Mr. Hamid R Davoodi & Sawitree S. Asawanuchit, 2003. "How Useful Are Benefit Incidence Analyses of Public Education and Health Spending," IMF Working Papers 2003/227, International Monetary Fund.
    3. Wawan JUSWANTO, 2009. "Distribution of Government Expenditure and Demand for Education Services: The Case of Indonesia," EcoMod2009 21500047, EcoMod.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    benefit incidence; education; government spending;
    All these keywords.

    JEL classification:

    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education

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