Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/190086 
Authors: 
Year of Publication: 
2018
Series/Report no.: 
WIDER Working Paper No. 2018/37
Publisher: 
The United Nations University World Institute for Development Economics Research (UNU-WIDER), Helsinki
Abstract: 
We examine the evolution of educational assistance in Indonesia, following two decades of government decentralization, and its effect on education quality. Using Indonesia Family Life Survey data, we exploit as exogenous rule the variation in the implementation of government decentralization to compute difference-in-difference estimators. Indicative evidence suggests decentralization has facilitated collusion between village authorities and marginalized private schools, with substantial increases in educational assistance and financial resources, especially to religious schools. Despite dominant rent-seeking behaviour and self-interest motives, increased public resource allocation to private schools impacted positively on student achievement. Our results also emphasize the role of social norms in undermining efficient public goods allocation after decentralization.
Subjects: 
decentralization
education transfer
education quality
difference-in-difference
semi-parametric estimation
Indonesia
JEL: 
H52
H53
I28
I38
Persistent Identifier of the first edition: 
ISBN: 
978-92-9256-479-7
Document Type: 
Working Paper

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