The Local Political Economy Effects of School Construction in Indonesia

Abstract

A by-product of the extension of mass education is the increase in the level of education of those eligible for political offices. This can have a profound impact on the effectiveness of local governments. In this paper, I examine the effects of a large school construction program in Indonesia on local governance and public good provision. The results show that the program led to important increases in the provision of public goods. Furthermore, I provide evidence consistent with the hypothesis that the increase in the education of the village heads was one of the main mechanisms behind these results. (JEL D72, H41, H75, I21, O15, O17)