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After the Big Bang: Estimating the effects of decentralization on educational outcomes in Indonesia through a difference-in-differences analysis
Affiliation:1. University of Melbourne, Australia;2. Padjadjaran University, Indonesia;1. Escuela Internacional de Ciencias Económicas y Administrativas, Universidad de La Sabana, Campus del Puente del Común, Km. 7, Autopista Norte de Bogotá, Chía, Cundinamarca, Colombia;2. Maastricht Graduate School of Governance, Maastricht University, Maastricht, The Netherlands;3. UNU MERIT, Maastricht, The Netherlands;1. University of Windsor, 167 Ferry St., Windsor, Ontario N9A0C5, Canada;2. University of Windsor, 401 Sunset Avenue, Windsor, Ontario N9C4E1, Canada;1. International Labour Organization (ILO), Geneva, Switzerland;2. Paris School of Economics, France
Abstract:Proponents of decentralization argue that bringing decisions closer to the people improves school quality and efficiency by ensuring that schools are more responsive to local educational needs. In practice, the effects of decentralization vary substantially, given that the implementation of these reforms relies on local resources and management capacity. In this paper, I estimate the effects of decentralization on educational outcomes in Indonesia using a difference-in-differences model. I find no overall effect on achievement, but a negative effect on teacher effort, particularly in rural areas and among schools with inactive school committees.
Keywords:Decentralization  School-based management  Difference-in-differences  Teacher effort  Student achievement  Educational policy
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