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Assessing the Role of Education on Intergenerational Income Mobility: The Case of Indonesia Kawinata, Michelle; Djohan, Stephanie; Kadarusman, Yohanes B.; Desfiandi, Alvin
Jurnal Ikatan Sarjana Ekonomi Indonesia Vol 11 No 3 (2022): December
Publisher : Jurnal Ekonomi Indonesia

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.52813/jei.v11i3.179

Abstract

This paper aims to address the role of education in Indonesia’s intergenerational income mobility. This will include measuring the level of intergenerational mobility to establish the general condition in Indonesia through the estimation of intergenerational income mobility. The main data used to test the model will be secondary data from the Indonesian Family Life Survey in 1993, 1997, 2000, 2007 and 2014. Through multiple linear regression analysis, the authors conclude that education influences the levels of intergenerational income mobility in Indonesia. Child’s education has a larger coefficient than father’s education in determining the child’s income. Public policy must focus on human investment to develop human capital through a provision of quality education throughout the country, particularly for people from lower income groups. Indonesia’s government should also allocate its education spending to increase the attainment of higher education level, establishing the next generations with higher productivity and income than previous generations.
The Effect of Credit among Micro, Small, and Medium Enterprises on Income Inequality in Indonesia Desfiandi, Alvin; Putra, Rama Prima
International Research Journal of Business Studies Vol. 16 No. 3 (2023): December 2023 - March 2024
Publisher : Universitas Prasetiya Mulya

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.21632/irjbs.16.3.263-274

Abstract

Income inequality has become a growing global concern during the last two decades. High income inequality can hinder economic growth, and in the case of Indonesia, the Gini coefficient continues to show an increasing trend. One of the factors that increase the level of income inequality is inequality in business opportunities and access to capital. To address this issue, the government created a credit program to benefit micro, small, and medium enterprises (MSMEs). MSME loans are basically designed to increase equality through the promotion of business opportunities. The authors seek to study the impact of MSME credit on income inequality in Indonesia using panel data with random effects in 33 provinces from 2005-2016. The results of this study are expected to provide an overview of whether the existing MSME credit program has been running effectively or not.