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Education in a Crisis


Thomas, Duncan; Beegle, Kathleen G.; Frankenberg, Elizabeth; Sikoki, Bondan; Strauss, John; & Teruel, Graciela M. (2004). Education in a Crisis. Journal of Development Economics, 74(1), 53-85.


The year 1998 saw the onset of a major economic and financial crisis in Indonesia. GDP fell by 12% that year. The effect on education of the next generation is examined. On average, household spending on education declined, most dramatically among the poorest households. Spending reductions were particularly marked in poor households with more young children, while there was a tendency to protect education spending in poor households with more older children. The evidence on school enrollments mirrors these findings. Poor households apparently sought to protect investments in the schooling of older children at the expense of the education of younger children.


Reference Type

Journal Article

Year Published


Journal Title

Journal of Development Economics


Thomas, Duncan
Beegle, Kathleen G.
Frankenberg, Elizabeth
Sikoki, Bondan
Strauss, John
Teruel, Graciela M.