Does Education Spending Matter? Long-term Effects on Child Outcome in Indonesia

DOI

10.2991/978-94-6463-680-2_24How to use a DOI?

Keywords

Education Spending; Children; Labor Outcome; Sakernas

Abstract

Education-driven human resource development plays a vital role in fostering inclusive economic growth and ensuring the long-term well-being of communities, particularly in underdeveloped rural areas of developing countries. In Indonesia, decentralization, initiated in 2001, has granted local governments the responsibility to manage education, leading to 98% of the population completing primary education, and significant improvements in secondary school enrollment rates. Despite these achievements, many educated individuals struggle to secure decent employment, with a significant proportion still engaged in informal work with low wages and limited social security benefits. This raises concerns about whether public education spending has effectively enhanced long-term labor market outcomes for children in adulthood. This study investigates the relationship between government education spending per capita and labor market outcomes. To measure the extent of the influence of education policies in Indonesia during the decentralization period, this study uses government spending data on education functions allocated by each district/city in Indonesia during the period 2007–2018. Data on individual-level labor market outcomes are taken from the National Labor Force Survey (Sakernas) conducted in 2019–2023 by the Central Statistics Agency. The study expected to provide insights into the broader implications of public education policy on human capital development and labor market dynamics in Indonesia.

Copyright

© 2025 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Muhammad Salahudin Ayyubi
AU  - Devanto Shasta Pratomo
AU  - Ferry Prasetyia
AU  - Susilo Susilo
PY  - 2025
DA  - 2025/04/26
TI  - Does Education Spending Matter? Long-term Effects on Child Outcome in Indonesia
BT  - Proceedings of the Asia Pacific Sociological Association Conference  (APSA 2024)
PB  - Atlantis Press
SP  - 283
EP  - 294
SN  - 2667-128X
UR  - https://doi.org/10.2991/978-94-6463-680-2_24
DO  - 10.2991/978-94-6463-680-2_24
ID  - Ayyubi2025
ER  -