Abstract
Introduction. School transition is important as a benchmark for education progress in many developing countries, including Indonesia. Moreover, the school transition has been identified as a crucial turning point in school progress in Indonesia. The purpose of the article is to analyze the role of income, gender against the school transition in Indonesia. Materials and Methods. Methods in this research were conducted in two phases, fixed effect and conditional logit. The data used are from the Indonesian Family Life Survey and to capture the occurrence of several events in Indonesia with the risk associated with economic crisis in Indonesia against school transition. Results. A sharp permanent income decrease shock will have a larger effect upon parental investment than one realized later in the child’s lifetime and the effect of permanent household income shocks is significant and decreases in older childhood, as predicted by the permanent income hypothesis. When household income is faced with shocks constraint conditions of loans and credit market imperfections, girls tend to be used as a coping strategy to support private consumption in doing consumption smoothing, especially transition from primary to junior secondary education. Discussion and Conclusion. Permanent income have long-term consequences of the decision-making process in the school transition. Girls experienced an increase in continuing education, especially at higher levels. Furthermore, when household income is faced with shocks constraint conditions of loans and credit market imperfections, girls tend to be used as a coping strategy to support private consumption in doing consumption smoothing. Keywords: complete secondary education, role of income, gender, fixed effect, conditional logit, school transition
Highlights
School transition is an important time for children, families, and school communities
The estimates of various components of transitory income to household income in Table 2 indicates that the shock caused by the decline in household income or business sector due to fires, earthquakes and other disasters have negative effect on household Income amounting to 0,1434 households and was statistically significant at level 5 percent, with the greatest influence in rural areas. This finding is consistent with previous studies in Indonesia which show that household income shock or business sector due to fires, earthquakes, and other disasters negatively affect the welfare of households, especially in rural areas than urban areas [19]
Girls have a positive effect on the probability of attending school at junior secondary education (SMP) and senior secondary education (SMA)
Summary
School transition is an important time for children, families, and school communities. Research suggests that children who make a smooth transition and experience early school success tend to maintain higher levels of social competence and academic achievement. If there is a decrease in the quality of human capital, it will be likely to have both direct and indirect consequences to the level of social welfare, poverty and economic development of a country. One of the problems of the decline in human capital investment in developing countries, including Indonesia, is the vulnerability of various risks associated with the shocks leading to high levels of volatility in income resulting in low levels of school enrolment, school transition and high level of dropout
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