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Inequality estimates derived from household consumption expenditure surveys (Susenas) suggest that economic inequality in Indonesia was comparatively moderate during the rapid economic transition in the Suharto era (1966–1998). Yet the expenditure distribution concept and problems of underreporting and selection bias constrain meaningful international inequality comparisons. This paper reassesses Indonesian inequality from a comparative perspective employing various alternative data sources and indicators. A comparison with Brazil, Mexico and the US reveals that Indonesian inequality levels are generally closer to Latin American levels than to US levels. Except for large short-term fluctuations, we did not find an overall increasing or decreasing inequality tendency between 1966 and 1998.
Economic History of Developing Regions – Taylor & Francis
Published: Jun 1, 2010
Keywords: Indonesia; inequality; Theil index; N15; O11; O17; P44
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