Journal Article
Educational Assistance and Education Quality in Indonesia

The equitable provision of quality education is important for growth and inclusive development. Human capital facilitates the creation of knowledge, fosters innovation, and enhances productivity. In addition, education is the key factor in explaining gaps in economic inclusion. For example, returns to education have been conclusively shown to have important implications for earnings and broader aspects of labor market inequality.

Declining returns to education and skills mismatch in the labor market contribute to lower relative growth in the average earnings of low‐income workers over time. Both returns to education and skills mismatch are linked not only to trends on the demand side of the labor market, but also to the quality of the education sector.

Thus, it is essential to study the provision of high‐quality education. The quality of education is a highly politicized issue. Improving access to high‐quality education has continued to be a pressing agenda for governments in developing economies.