RIEB Discussion Paper Series No.2025-16

Title

Policy for Closing Education Gaps across Gender and Culture: Tuition-Free Education or School Construction?

Abstract

This paper examines which education policies effectively serve underrepresented groups in developing countries by distinguishing between cost/demand-side and supply-side interventions. Using a regression discontinuity design, it shows that Indonesia's Free Primary Education (FPE) program, which abolished primary school tuition fees in 1977–1978, more effectively improved historically low female educational attainment than the concurrent school construction program. These educational gains also reduced child marriage and raised future earnings among women. FPE's impact was larger in areas with greater school supply but remained effective in communi ties lacking bride price practices. Eliminating tuition fees can promote female education even in culturally low-demand settings.

Keywords

Free primary education; Indonesia; Gender; Bride price; Culture

JEL Classification

I24, I25, I28, J16, Z13, Z18

Inquiries

Kotaro FUJISAKI*
Department of Economics, University College London
Junior Research Fellow, RIEB, Kobe University

*This Discussion Paper won the Kanematsu Prize (FY 2024).