Publication: Investing in Indonesia's Education : Allocation, Equity, and Efficiency of Public Expenditures
Date
2007-08
ISSN
Published
2007-08
Author(s)
Arze del Granado, F. Javier
Fengler, Wolfgang
Ragatz, Andy
Yavuz, Elif
Abstract
What are the current trends and main
characteristics of public education spending in Indonesia?
Is education spending insufficient? Are expenditures in
education efficient and equitable? This study reports the
first account of Indonesia's aggregated (national and
sub-national) spending on education, as well as the economic
composition of education spending and its breakdown by
programs. It presents estimations of the expected (average)
level of education spending for a country with its economic
and social characteristics. This analysis sheds light on the
efficiency and equity of education spending by presenting
social rates of return by level of education, by assessing
the adequacy of current teacher earnings relative to other
paid workers and the distribution of teachers across urban,
rural, and remote regions, and by identifying the main
determinants of education enrollment. It concludes that the
current challenges in Indonesia are no longer defined by the
need of additional spending, but rather the need to improve
the quality of education services, and to improve the
efficiency of education expenditures by re-allocating
teachers to undersupplied regions and re-adjusting the
spending mix within and between education programs for
future additional spending in the sector. The study finds
that poverty and student-aged labor are also significant
constraints to education enrollment, stressing the
importance of policies aimed at addressing demand-side factors.
Citation
“Arze del Granado, F. Javier; Fengler, Wolfgang; Ragatz, Andy; Yavuz, Elif. 2007. Investing in Indonesia's Education : Allocation, Equity, and Efficiency of Public Expenditures. Policy Research Working Paper; No. 4329. © World Bank, Washington, DC. http://openknowledge.worldbank.org/entities/publication/a9c2e407-c7d7-54f8-8d6b-20b923b006df License: CC BY 3.0 IGO.”
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