Education inequality effect on poverty and economic growth: Empirical study in province of East Java

Ady Soejoto; Waspodo Tjipto Subroto; Lucky Rachmawati; Ni'matus Sholikah

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Education inequality effect on poverty and economic growth: Empirical study in province of East Java

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Ady Soejoto, Waspodo Tjipto Subroto, Lucky Rachmawati, Ni'matus Sholikah

2016 International Journal of Applied Business and Economic Research Vol. 14 Issue 6 Article Cited by 1 SDG 10SDG 8

Abstract

This study examines factors that affect educational inequality in the areas of East Java province which have an indicator of inequality index higher and lower. Study on the factors that will be examined in more depth in this study includes: dependency ratio, poverty, economic growth, and sex ratio. The sampling technique used is purposive sampling technique. Number of samples taken four areas have highest and the lowestof educational inequality index score, each of two districts/cities in each group in East Java region, namely Pamekasan, Bojonegoro, Malang, and Madiun. Data in 2008 to 2013 periods were analyzed using panel data regression model (pooled data) by random effectmethod. The analysis showed dependency ratio, poverty, economic growth, and sex ratio contribute to educational inequality with variable dependency ratio and poverty decisively have an effect on educational inequality in East Java. Partially dependency ratio and poverty rate variable has a positive contribution to education inequality, while economic growth and sex ratiovariables, partially no significant effect.

Affiliations

Airlangga University, Indonesia; Faculty of Economic, UniversitasNegeri Surabaya, Indonesia

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