Successful reductions in poverty, resulting from substantial increases in income and structural transformation, have been associated with growing levels of income inequality. This paper explores the link between structural transformation and inequality in Indonesia by applying Theil’s L...

People's trust in state and political institutions is a key foundation of a well-functioning economy. We estimate the impact of direct elections on people's trust in state and political institutions, using a major political reform in Indonesia as the source of exogenous variation. Prior to 2005,...