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The aim of this paper is to investigate the effects of inadequate basic facilities on learning; and the effects of low income on educational investment. The authors consider how these resource and income constraints affect the different dimensions of school quality and educational outcomes. This investigation is carried out using data for Indonesia over the period 1997 - 2000. To carry out this empirical analysis, they adopt theoretical models of human capital from Becker (1964, 1993 updated), and Cunha and Heckman (2007) and apply them within the context of Indonesian children's primary school and junior high education. The dataset that they use throughout this dissertation is the RAND Corporation Indonesian Family Life Surveys (IFLS) Wave 2 from 1997 and Wave 3 from 2000.
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