Urbanization, educational expansion, and expenditures inequality in Indonesia in 1996, 1999, and 2002

This paper considers urban-rural location and education as the main causes of expenditure inequality and attempts to examine inequality changes associated with urbanization and educational expansion in Indonesia from 1996 to 2002, using Indonesian monthly household consumption expenditure data. It i...

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Main Authors: Akita, Takahiro, Miyata, Sachiko
Format: Artículo preliminar
Language:Inglés
Published: International Food Policy Research Institute 2007
Subjects:
Online Access:https://hdl.handle.net/10568/160225
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author Akita, Takahiro
Miyata, Sachiko
author_browse Akita, Takahiro
Miyata, Sachiko
author_facet Akita, Takahiro
Miyata, Sachiko
author_sort Akita, Takahiro
collection Repository of Agricultural Research Outputs (CGSpace)
description This paper considers urban-rural location and education as the main causes of expenditure inequality and attempts to examine inequality changes associated with urbanization and educational expansion in Indonesia from 1996 to 2002, using Indonesian monthly household consumption expenditure data. It introduces a hierarchical framework of inequality decomposition by population subgroups, which enables researchers to analyze inequality resulting from differences in educational attainment as well as inequality within each educational group, after the effects on inequality of urban–rural differences in the composition of educational attainments are removed. It finds that the urban sector’s higher educational group contributes significantly to overall inequality. Inequality within the group increased significantly once Indonesia recovered from the financial crisis of 1998. This, together with educational expansion in urban areas, led to a conspicuous rise in urban inequality. Overall expenditure inequality has increased markedly, due not only to the rise in urban inequality but also a widening urban-rural disparity, accompanied by a population shift from the rural to the urban sector. Since more people will obtain higher education as the economy continues to develop, and more jobs requiring specialized skills become available in urban areas, urban inequality is likely to remain high. In order to mitigate urban inequality and thus overall inequality, the government needs to introduce policies that could reduce inequality among households whose heads have a tertiary education.
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spelling CGSpace1602252025-11-06T07:20:14Z Urbanization, educational expansion, and expenditures inequality in Indonesia in 1996, 1999, and 2002 Akita, Takahiro Miyata, Sachiko expenditure inequality urbanization This paper considers urban-rural location and education as the main causes of expenditure inequality and attempts to examine inequality changes associated with urbanization and educational expansion in Indonesia from 1996 to 2002, using Indonesian monthly household consumption expenditure data. It introduces a hierarchical framework of inequality decomposition by population subgroups, which enables researchers to analyze inequality resulting from differences in educational attainment as well as inequality within each educational group, after the effects on inequality of urban–rural differences in the composition of educational attainments are removed. It finds that the urban sector’s higher educational group contributes significantly to overall inequality. Inequality within the group increased significantly once Indonesia recovered from the financial crisis of 1998. This, together with educational expansion in urban areas, led to a conspicuous rise in urban inequality. Overall expenditure inequality has increased markedly, due not only to the rise in urban inequality but also a widening urban-rural disparity, accompanied by a population shift from the rural to the urban sector. Since more people will obtain higher education as the economy continues to develop, and more jobs requiring specialized skills become available in urban areas, urban inequality is likely to remain high. In order to mitigate urban inequality and thus overall inequality, the government needs to introduce policies that could reduce inequality among households whose heads have a tertiary education. 2007 2024-11-21T09:50:18Z 2024-11-21T09:50:18Z Working Paper https://hdl.handle.net/10568/160225 en Open Access application/pdf International Food Policy Research Institute Akita, Takahiro; Miyata, Sachiko. Urbanization, educational expansion, and expenditures inequality in Indonesia in 1996, 1999, and 2002. IFPRI Discussion Paper 728. International Food Policy Research Institute (IFPRI). https://hdl.handle.net/10568/160225
spellingShingle expenditure inequality
urbanization
Akita, Takahiro
Miyata, Sachiko
Urbanization, educational expansion, and expenditures inequality in Indonesia in 1996, 1999, and 2002
title Urbanization, educational expansion, and expenditures inequality in Indonesia in 1996, 1999, and 2002
title_full Urbanization, educational expansion, and expenditures inequality in Indonesia in 1996, 1999, and 2002
title_fullStr Urbanization, educational expansion, and expenditures inequality in Indonesia in 1996, 1999, and 2002
title_full_unstemmed Urbanization, educational expansion, and expenditures inequality in Indonesia in 1996, 1999, and 2002
title_short Urbanization, educational expansion, and expenditures inequality in Indonesia in 1996, 1999, and 2002
title_sort urbanization educational expansion and expenditures inequality in indonesia in 1996 1999 and 2002
topic expenditure inequality
urbanization
url https://hdl.handle.net/10568/160225
work_keys_str_mv AT akitatakahiro urbanizationeducationalexpansionandexpendituresinequalityinindonesiain19961999and2002
AT miyatasachiko urbanizationeducationalexpansionandexpendituresinequalityinindonesiain19961999and2002