The Effects of Government Education Spending on School Enrollment in Indonesia

Megawati Megawati


Government expenditure for education increases every year for the implementation of education sector including to increase the number of enrollment rate. However, there are some children who do not enroll in school especially senior high school-aged children. This study examines the effects of government spending on education on school enrollment in Indonesia. This research uses cross-sectional data from the National Socioeconomic Survey (Susenas) and the government spending on education data for four years. This study uses probit model by employing the government education spending as the main factor. The control variables used in this study consist of parents’ education, household expenditure, male, urban, birth order, the number of siblings, missing parent, GRDP per capita, year dummy, and interaction terms among some variables. The observation is divided into two groups of age: 7-15 and 16-18. The results show that the government education spending has a positive and significant effect on school enrollment in Indonesia. In addition, the interaction terms show that the government education spending is associated with greater probability of school enrollment for poor children and for the girls.


cross-sectional data; parents’ education; probit; school-aged children; susenas

Full Text:



Arze del Granado, F. J., Fengler, W., Ragatz, A., & Yavuz, E. (2007). Investing in Indonesia's education: allocation, equity, and efficiency of public expenditures. World Bank Policy Research Working Paper, (4329).

Basu, K. (1999). Child labor: cause, consequence, and cure, with remarks on international labor standards. Journal of Economic literature, 37(3), 1083-1119.

Buchmann, C., & Brakewood, D. (2000). Labor Structures and School Enrollments in Developing Societies: Thailand and Kenya Compared. Comparative Education Review, 44(2), 175–204.

Colclough, C., Rose, P., & Tembon, M. (2000). Gender inequalities in primary schooling: The roles of poverty and adverse cultural practice. International Journal of Educational Development, 20(1), 5-27.

Emerson, P. M., & Souza, A. P. (2008). Birth order, child labor, and school attendance in Brazil. World Development, 36(9), 1647-1664.

Glewwe, P., & Kremer, M. (2006). Schools, teachers, and education outcomes in developing countries. Handbook of the Economics of Education,2, 945-1017.

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.

Gupta, S., Verhoeven, M., & Tiongson, E. R. (2002). The effectiveness of government spending on education and health care in developing and transition economies. European Journal of Political Economy, 18(4), 717-737.

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.

International Labour Organization and Statistics Indonesia. (2009). Working Children in Indonesia 2009.

Mankiw, N. (2009). Macroeconomics 7th edition. Harvard University.

Rahji, M. A. Y. (2005, November). Primary School Enrollment and Gender Gap of Rural Households’ Children in South Western Nigeria”. In Regional Conference on Education in West Africa: Constraints and Opportunities. Dakar: Senegal.

Rosen, H. S., & Gayer, T. (2008). Public Finance 8th edition. McGraw-Hill.

Statistics Indonesia. (2003-2015). Net Enrollment Rate. Retrieved on November 2016, on

Tsujita, Y. (2013). Factors that prevent children from gaining access to schooling: A study of Delhi slum households. International Journal of Educational Development, 33(4), 348-357.

UNESCO. (2016). Education. Retrieved on November 2016, on

Van den Berg, Hendrik. (2001). Economic Growth and Development. McGraw-Hill.

Webbink, E., Smits, J., & de Jong, E. (2012). Hidden child labor: Determinants of housework and family business work of children in 16 developing countries. World Development, 40(3), 631-642.

Wooldridge, Jeffrey M. (2010). Econometric Analysis of Cross Section and Panel Data 2nd edition. The MIT Press.



  • There are currently no refbacks.

Creative Commons License
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.


Published by Lembaga Penelitian dan Pengabdian kepada Masyarakat
Adress: Jl.Slamet Ryadi, Broni-Jambi, Kec.Telanaipura, Kodepos: 36122, email:, Phone: 0741-670700

Creative Commons License This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.