The Contrasting Role of Ability and Poverty on Education Attainment: Evidence from Indonesia

25 Pages Posted: 20 Aug 2009

See all articles by Daniel Suryadarma

Daniel Suryadarma

Australian National University (ANU) - Arndt-Corden Department of Economics; SMERU Research Institute

Asep Suryahadi

SMERU Research Institute

Date Written: August 19, 2009

Abstract

This study measures the relative role of poverty and scholastic ability on education attainment in developing countries, where a substantial portion of the population still live in poverty and poor people are markedly credit constrained. Different from most studies in developing countries, this paper uses a multiple wave and long-spanning panel dataset that follows a cohort of children beginning from primary school until they are well over schooling age. We find that poverty has a statistically significant and negative effect on junior secondary attainment, while it has a negligible effect on senior secondary completion. In contrast, scholastic ability plays no role in ensuring junior secondary completion but is crucial in increasing a child’s chance to graduate from senior secondary school. In addition, we find that high and low ability poor children have a similarly low chance of finishing junior secondary school. Based on our findings, we formulate several policy recommendations to increase education attainment.

Keywords: poverty, scholastic ability, education, Indonesia

JEL Classification: I21, O15

Suggested Citation

Suryadarma, Daniel and Suryahadi, Asep, The Contrasting Role of Ability and Poverty on Education Attainment: Evidence from Indonesia (August 19, 2009). Available at SSRN: https://ssrn.com/abstract=1458065 or http://dx.doi.org/10.2139/ssrn.1458065

Daniel Suryadarma (Contact Author)

Australian National University (ANU) - Arndt-Corden Department of Economics ( email )

ANU College of Asia and the Pacific
J.G. Crawford Building, #132, Lennox Crossing
Canberra, Australian Capital Territory 0200
Australia

SMERU Research Institute ( email )

Jl. Pandeglang No. 30
Jakarta, 10310
Indonesia
62 21 31936336 (Phone)
62 21 31930850 (Fax)

HOME PAGE: http://www.smeru.or.id

Asep Suryahadi

SMERU Research Institute ( email )

Jl. Cikini Raya No. 10A
Jakarta, 10330
Indonesia

HOME PAGE: http://www.smeru.or.id

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