Abstract
This paper aims at investigating the effect of local government policy on the decision of secondary school enrollment in Indonesia. It combines various datasets such as Indonesia Family Life Survey based on the household and community survey, village survey (PODES), and district data level for statistical analysis. By using a probit model, this study finds that the local government policy on education, such as pupil-to-class room ratio and education expenditure per population in secondary school age, is found to have significant impact on the parents’ decision to enroll their children in the school. Further estimation on the interaction of local government policy with female child shows that only the number of public secondary school per population variable has low impact on secondary school enrollment decision.
Similar content being viewed by others
Notes
In this paper, since the implementation of education law 20/2003 and local government law 32/2004 reveals that district governments are responsible for managing the primary and secondary education levels: schools and teachers. We classify the education quality and facilities into local government policies.
Excluding municipals of DKI Jakarta province, the capital of Indonesia, due to non-autonomous municipal.
References
Abafita, J., & Kim, C.-S. (2015). Determinants of childrens schooling: The case of Tigray Region, Ethiopia. Educational Research and Reviews, 10(8), 1130–1146.
Admassie, A., & Bedi, A. S. (2003). Attending school: two “Rs” and child work in rural Ethiopia (ISS Working Papers - General Series No. 19146). International Institute of Social Studies of Erasmus University Rotterdam (ISS), The Hague. Retrieved from https://ideas.repec.org/p/ems/euriss/19146.html.
Ahiakpor, F., & Swaray, R. (2015). Parental expectations and school enrolment decisions: Evidence from rural Ghana. Review of Development Economics, 19(1), 132–142. https://doi.org/10.1111/rode.12122.
Al-Samarrai, S. (2006). Achieving education for all: How much does money matter? Journal of International Development, 18(2), 179–206. https://doi.org/10.1002/jid.1190.
Al-Samarrai, S. (2013). Local governance and education performance: A survey of the quality of local education governance in 50 Indonesian districts. Jakarta Indonesia; World Bank. http://documents.worldbank.org/curated/en/794841468044380862/Main-report. Retrieved 27 Apr 2017.
Al-Samarrai, S., & Peasgood, T. (1998). Educational attainments and household characteristics in Tanzania. Economics of Education Review, 17(4), 395–417. https://doi.org/10.1016/S0272-7757(97)00052-6.
Anyanwu, J. C., & Erhijakpor, A. E. (2007). Education expenditures and school enrolment in Africa: Illustrations from Nigeria and other SANE countries. Tunisia: African Development Bank.
Badea, L. (2011). Economic crisis and education. Case study: the romanian educational system. Equilibrium. Quarterly Journal of Economics and Economic Policy, 6(3), 71–84. https://doi.org/10.12775/EQUIL2011.021.
Becker, G. S. (1962). Investment in human capital: A theoretical analysis. Journal of Political Economy, 70(5), 9–49.
Becker, G. S. (1964). Human capital theory. New York: Columbia.
Becker, G. S. (1993). Nobel lecture: The economic way of looking at behavior. Journal of Political Economy, 101(3), 385–409.
Booth, A. (2001). Initial conditions and miraculous growth: Why is Southeast Asia different from Taiwan and South Korea? Southeast Asia’s Industrialization (pp. 30–58). London: Palgrave Macmillan. https://doi.org/10.1057/9781137002310_2.
BPS (Badan Pusat Statistik). (2014). Statistical year book of Indonesia 2014. Catalog number 1101001.
Burney, N. A., & Irfan, M. (1995). Determinants of child school enrolment: evidence from LDCs using choice‐theoretic approach. International Journal of Social Economics, 22(1), 24–40. https://doi.org/10.1108/03068299510075113.
Chernichovsky, D., & Meesook, O. A. (1985). School enrollment in Indonesia. Washington, DC: World Bank.
Chowdhury, F., & Audretsch, D. B. (2014). Institution as looting apparatus: Impact of gender equality and institutions on female entrepreneurship. Eurasian Business Review, 4, 207. https://doi.org/10.1007/s40821-014-0008-7.
Chyi, H., & Zhou, B. (2014). The effects of tuition reforms on school enrollment in rural China. Economics of Education Review, 38, 104–123. https://doi.org/10.1016/j.econedurev.2013.11.003.
Colclough, C., & Lewin, K. M. (1993). Educating all the children: Strategies for primary schooling in the South. Oxford, UK: Clarendon Press.
Crouch, L. A. (1992). Examining social and economic impacts of educational investment and participation in developing countries: The educational impacts model (EIM) approach. BRIDGES Research Report Series No. 12.
Dancer, D., & Rammohan, A. (2007). Determinants of schooling in Egypt: The role of gender and rural/urban residence. Oxford Development Studies, 35(2), 171–195. https://doi.org/10.1080/13600810701322041.
Deng, S., Huang, J., Jin, M., & Sherraden, M. (2014). Household assets, school enrollment, and parental aspirations for children’s education in rural China: Does gender matter? International Journal of Social Welfare, 23(2), 185–194. https://doi.org/10.1111/ijsw.12034.
Deolalikar, A. B. (1993). Gender differences in the returns to schooling and in school enrollment rates in Indonesia. The Journal of Human Resources, 28(4), 899–932. https://doi.org/10.2307/146297.
Duflo, E. (2001). Schooling and labor market consequences of school construction in Indonesia: Evidence from an unusual policy experiment. American Economic Review, 91(4), 795–813. https://doi.org/10.1257/aer.91.4.795.
Duflo, E. (2004). The medium run effects of educational expansion: evidence from a large school construction program in Indonesia. Journal of Development Economics, 74(1), 163–197. https://doi.org/10.1016/j.jdeveco.2003.12.008.
Estevan, F. (2015). Public education expenditures and private school enrollment. Canadian Journal of Economics/Revue Canadienne D’économique, 48(2), 561–584. https://doi.org/10.1111/caje.12136.
Fairhurst, J., & Nembudani, M. (2014). Government policy, demography and primary school enrolment in Vhembe District, Limpopo, South Africa. Education as Change, 18(1), 151–161. https://doi.org/10.1080/16823206.2013.847016.
Filmer, D., & Pritchett, L. (1999). The effect of household wealth on educational attainment: Evidence from 35 countries. Population and Development Review, 25(1), 85–120. https://doi.org/10.1111/j.1728-4457.1999.00085.x.
Flug, K., Spilimbergo, A., & Wachtenheim, E. (1998). Investment in education: do economic volatility and credit constraints matter? Journal of Development Economics, 55(2), 465–481. https://doi.org/10.1016/S0304-3878(98)00045-5.
Gaddah, M., Munro, A., & Quartey, P. (2016). Education subsidy and school enrollments in rural Ghana. International Journal of Educational Development, 46, 143–152. https://doi.org/10.1016/j.ijedudev.2015.11.001.
Gitter, S. R., & Barham, B. L. (2008). Women’s power, conditional cash transfers, and schooling in Nicaragua. The World Bank Economic Review, 22(2), 271–290.
Glick, P., & Sahn, D. E. (2000). Schooling of girls and boys in a West African country: The effects of parental education, income, and household structure. Economics of Education Review, 19(1), 63–87.
Glick, P., & Sahn, D. E. (2006). The demand for primary schooling in Madagascar: Price, quality, and the choice between public and private providers. Journal of Development Economics, 79(1), 118–145.
Gönsch, I. (2010). Determinants of primary school enrollment in Haiti and the Dominican Republic (Discussion Papers No. 54). Justus Liebig University Giessen, Center for international Development and Environmental Research (ZEU). https://ideas.repec.org/p/zbw/zeudps/54.html. Retrieved 11 Mar 2017.
Government of Indonesia. (1988). Petunjuk pelaksanaan wajib belajar pendidikan dasar sembilan tahun. Jakarta: Kantor Menteri Koordinator Kesejahteraan Rakyat, Departemen Pendidikan dan Kebudayaan, Departemen Dalam Negeri, Departemen Agama, Departemen Keuangan.
Granado, A. del, Javier, F., Fengler, W., Ragatz, A., & Yavuz, E. (2007). Investing in Indonesia’s education: allocation, equity, and efficiency of public expenditures (No. WPS4329) (pp. 1–45). The World Bank. http://documents.worldbank.org/curated/en/917841468268492807/Investing-in-Indonesias-education-allocation-equity-and-efficiency-of-public-expenditures. Retrieved 13 Apr 2017.
Gupta, S., Verhoeven, M., & Tiongson, E. R. (2002). The effectiveness of government spending on education and healthcare in developing and transition economies. European Journal of Political Economy, 18(4), 717–737. https://doi.org/10.1016/S0176-2680(02)00116-7
Handa, S. (2002). Raising primary school enrolment in developing countries: The relative importance of supply and demand. Journal of Development Economics, 69(1), 103–128. https://doi.org/10.1016/S0304-3878(02)00055-X.
Huisman, J., & Smits, J. (2009). Effects of household- and district-level factors on primary school enrollment in 30 developing countries. World Development, 37(1), 179–193. https://doi.org/10.1016/j.worlddev.2008.01.007.
IFLS. (2014). Indonesia family life survey (IFLS5). https://www.rand.org/labor/FLS/IFLS/ifls5.html. Retrieved 14 July 2016.
Juswanto, W. (2009). Distribution of government expenditure and demand for education services: The case of Indonesia. http://www.ecomod.net/sites/default/files/document-conference/ecomod2009/875.pdf. Retrieved 17 Jan 2017.
Kabubo‐mariara, J., & Mwabu, D. K. (2007). Determinants of school enrolment and education attainment: Empirical evidence from Kenya1. South African Journal of Economics, 75(3), 572–593. https://doi.org/10.1111/j.1813-6982.2007.00138.x.
Levine, D., & Ames, M. (2003). Gender Bias and the Indonesian Financial Crisis: Were Girls Hit Hardest?, Working Paper Series C03-130, Berkeley, CA: Center for International and Development Economics Research. http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.195.8595&rep=rep1&type=pdf. Retrieved 23 Apr 2017.
Levine, D., & Kevane, M. (2003). Are investments in daughters lower when daughters move away? Evidence from Indonesia. World Development, 31(6), 1065–1084. https://doi.org/10.1016/S0305-750X(03)00050-0.
Lincove, J. A. (2012). The influence of price on school enrollment under Uganda’s policy of free primary education. Economics of Education Review, 31(5), 799–811. https://doi.org/10.1016/j.econedurev.2012.04.007.
Lloyd, C. B., Mete, C., & Sathar, Z. A. (2005). The effect of gender differences in primary school access, type, and quality on the decision to enroll in rural Pakistan. Economic Development and Cultural Change, 53(3), 685–710. https://doi.org/10.1086/427042.
Marazyan, K. (2011). Effects of a sibship extension to foster children on children’s school enrolment: A sibling rivalry analysis for Indonesia. The Journal of Development Studies, 47(3), 497–518. https://doi.org/10.1080/00220388.2010.492859.
OECD. (2013). Structural policy challenges for Southeast Asian countries. In Southeast Asian economic outlook 2013: With perspectives on China and India. OECD Publishing, Paris. https://doi.org/10.1787/saeo-2013-8-en.
OECD/ADB. (2015). Education in Indonesia. OECD Publishing. http://www.oecd-ilibrary.org/education/education-in-indonesia_9789264230750-en. Retrieved 27 Apr 2017.
Oey-Gardiner, M. (1991). Gender differences in schooling in Indonesia. Bulletin of Indonesian Economic Studies, 27(1), 57–79. https://doi.org/10.1080/00074919112331335938.
Olaniyan, O. (2011). The Determinants of child schooling in Nigeria. AERC Research Paper 217, African Economic Research Consortium, Nairobi.
Pal, S. (2004). How much of the gender difference in child school enrolment can be explained? Evidence from rural India. Bulletin of Economic Research, 56(2), 133–158. https://doi.org/10.1111/j.1467-8586.2004.00193.x.
Posso, A. (2011). Government expenditure on education and enrolment rates in Indonesia in the new millennium: An East Asian perspective. Journal of the Asia Pacific Economy, 16(2), 233–240. https://doi.org/10.1080/13547860.2011.564751.
Posso, A., & Feeny, S. (2016). Beyond enrolment: The determinant of primary-school attendance in Melanesia. Journal of the Asia Pacific Economy, 21(4), 531–548. https://doi.org/10.1080/13547860.2016.1153205.
Pradhan, M. (1998). Enrolment and delayed enrolment of secondary school age children in Indonesia. Oxford Bulletin of Economics and Statistics, 60(4), 413–430. https://doi.org/10.1111/1468-0084.00107.
Schultz, T. P. (1999). Health and schooling investments in Africa. Journal of Economic Perspectives, 13(3), 67–88. https://doi.org/10.1257/jep.13.3.67.
Suryadarma, D. (2012). How corruption diminishes the effectiveness of public spending on education in Indonesia. Bulletin of Indonesian Economic Studies, 48(1), 85–100. https://doi.org/10.1080/00074918.2012.654485.
Suryadarma, D., Suryahadi, A., & Sumarto, S. (2006). Causes of low secondary school enrollment in Indonesia (Labor Economics Working Paper No. 22546). East Asian Bureau of Economic Research. https://ideas.repec.org/p/eab/laborw/22546.html. Retrieved 25 Apr 2017.
Takahashi, K. (2011). Determinants of Indonesian rural secondary school enrolment: Gender, neighbourhood and school characteristics. Bulletin of Indonesian Economic Studies, 47(3), 395–413. https://doi.org/10.1080/00074918.2011.619053.
Tansel, A. (2002). Determinants of school attainment of boys and girls in Turkey: individual, household and community factors. Economics of Education Review, 21(5), 455–470. https://doi.org/10.1016/S0272-7757(01)00028-0.
Vuri, D. (2007). The effect of availability and distance from school on children’s time al location in Ghana and Guatemala (No. 64537) (pp. 1–0). The World Bank. http://documents.worldbank.org/curated/en/449361468282894892/The-effect-of-availability-and-distance-from-school-on-childrens-time-al-location-in-Ghana-and-Guatemala. Retrieved 27 Apr 2017.
Whitsel, C. M., & Mehran, W. (2010). School, work, and community-level differences in Afghanistan and Tajikistan: divergence in secondary school enrolment of youth. Central Asian Survey, 29(4), 501–519. https://doi.org/10.1080/02634937.2010.533973.
World Bank. (2013). Indonesia—spending more or spending better: Improving education financing in Indonesia. World Bank, Jakarta. World Bank. License: CC BY 3.0 Unported. https://openknowledge.worldbank.org/handle/10986/13210. Retrieved 11 May 2017.
Author information
Authors and Affiliations
Corresponding author
Electronic supplementary material
Below is the link to the electronic supplementary material.
Rights and permissions
About this article
Cite this article
Prasetyia, F. The role of local government policy on secondary school enrolment decision in Indonesia. Eurasian Econ Rev 9, 139–172 (2019). https://doi.org/10.1007/s40822-018-0101-9
Received:
Revised:
Accepted:
Published:
Issue Date:
DOI: https://doi.org/10.1007/s40822-018-0101-9