Munich Personal RePEc Archive

Distribution of Government Spending on Education in Indonesia

Mas Jasmin Wika, Gek Sintha and Widodo, Tri (2012): Distribution of Government Spending on Education in Indonesia.

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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.

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