Title: Household expenditure and its effect on children’s educational achievement in Indonesia, 2011–2013
Abstract: Poverty eradication is one of the sustainable development goals that need to be fulfilled as soon as possible. Earlier researches informed that human resource development, particularly children’s education, contributes very much to this. One of those studies concluded there is a substantial relationship between household income/expenditure with educational achievement of their children. The objective of this research is to determine the mobility effect and household expenditure elasticity to mean years of children’s schooling based on Panel Social Economic Household Survey 2011–2013 in Indonesia. It is found that household expenditure mobility is more common in the three middle quintiles than in the lowest or top quintile, both in urban and rural areas. Also, a household’s per capita expenditure has more influence on mean years of children’s schooling in urban areaa than in rural. One of the novel implications of this research is promoting the importance of education and evaluating government education programs especially in the cash transfer program.