Education plays an important role in developing human capital and achieving
sustainable development, especially for developing countries. As a developing country,
Indonesia has taken important steps to improve the education sector. This dissertation will address the following three main questions:
1) What explains the inter-district disparities associated with the amount of funds the
local government directs toward education?
2) What is the role of local policies in determining the decision of households to send their children to secondary school?
3) What is the wage premium for education above the level of junior secondary school?