Template-type: ReDIF-Paper 1.0 Author-Name: Mitsuhiro Hayashi Author-Name-First: Mitsuhiro Author-Name-Last: Hayashi Author-Email: mitsuhiro.hayashi@anu.edu.au Author-Workplace-Name: Crawford School, ANU/Chuo University Author-Workplace-Homepage: http://crawford.anu.edu.au/ Author-Name: Mitsuhiko Kataoka Author-Name-First: Mitsuhiko Author-Name-Last: Kataoka Author-Email: m-kataoka@cku.ac.jp Author-Workplace-Name: Chiba Keizai University Author-Workplace-Homepage: http://www.cku.ac.jp/ Author-Name: Takahiro Akita Author-Name-First: Takahiro Author-Name-Last: Akita Author-Email: akita@iuj.ac.jp Author-Workplace-Name: International University of Japan Author-Workplace-Homepage: http://www.iuj.ac.jp/ Title: Spatial Dimensions of Expenditure Inequality and the Role of Education in Indonesia: An Analysis of the 2008-2010 Susenas Panel Abstract: Based on 2008-2010 Susenas panel data, this study analyzes expenditure inequality in Indonesia from spatial perspectives by using several inequality decomposition methods: decomposition of the Theil indices by population subgroups; decomposition of the Gini coefficient by expenditure components; and the Blinder-Oaxaca decomposition. In the Theil decomposition, this study employs not only the conventional approach but also an alternative approach proposed by Elbers and others (2008). Our results show that a substantial portion of expenditure inequality is attributed to inequalities within urban and rural sectors. According to the alternative approach, however, the contribution of between-sector inequality increases conspicuously, suggesting that there are notable differences in the distribution of per capita household expenditures between the urban and rural sectors. Educational differences appear to have played an important role in urban inequality as well as urban-rural disparity. For both urban and rural households, expenditures on non-food items, including expenditure on education, serve to have increased total inequality. Classification-JEL: O5, O8, R12 Length: 33 pages Creation-Date: 2012-11 Number: EMS_2012_21 File-URL: https://www.iuj.ac.jp/workingpapers/index.cfm?File=EMS_2012_21.pdf File-Format: Application/pdf File-Function: First version, 2012 File-Size: 836KB Keywords: Income Indonesia, spatial inequality, decomposition of Theil indices and Gini coefficient, Blinder-Oaxaca decomposition, education, contribution of between-group inequality Handle: RePEc:iuj:wpaper:EMS_2012_21