Lesi Herleni, the student of Faculty of Economy, Sriwijaya University, Palembang, Indonesia

e-mail: leci.alzain@gmail.com

Azwardi, Lecturer at the Faculty of Economy, Sriwijaya University, Palembang, Indonesia

e-mail: azwardi_unsri@yahoo.com

Sukanto, Lecturer at the Faculty of Economy, Sriwijaya University, Palembang, Indonesia

e-mail: soekanto0813@fe.unsri.ac.id

Education Inequality and Economic Growth: a Case Study in South Sumatra Province

Abstract. Introduction. This study was conducted to find out how education inequality and its relationship to economic growth in South Sumatra Province. The data used in this study are secondary data sourced from BPS Statistics Indonesia, the Directorate General of Finance and the publication of the results of previous studies that are relevant to this study. The data analysis method used is the analysis of Education Gini index, panel data regression analysis, Granger Causality Analysis. The results of are expected to be a reference material for further research and consideration in development planning in South Sumatra Province.

Purpose. The purpose of this study is to find the size of education inequality, the influence factors, and how it relates to economic growth in the Province of South Sumatra.

Results. The results of this study indicate that the inequality of education in South Sumatra Province is at a low level of inequality, which is an average of 0.239. The factors that significantly influence the inequality of education are gender gap and the mean years school, while the variable of government expenditure in education has no effect. While Granger causality analysis shows that there is only a one-way relationship between education inequality and economic growth in South Sumatra Province. Economic growth has a significant effect on the inequality of education and but not vice versa.

Conclusion. Based on the results, the government of South Sumatra can find out strategies to reduce inequality in education. Increasing awareness in accessing education and equalizing access to education for men and women are expected to reduce eduaction inequality. Furthermore, evenly distributed economic growth can also be influential in reducing education inequality.

Keywords: education inequality, gender gap, mean years school, government expenditure on education, economic growth.

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