Volume III: Education and Ecological Literacy

The Impact of Disparities in Education Quality on Economic Growth Traps and Job Market Segmentation

  • Trisna Taufik Darmawansyah UIN Sultan Maulana Hasanuddin Banten, Indonesia
  • Sanawi UIN Sultan Maulana Hasanuddin Banten, Indonesia
  • Yani Aguspriyani UIN Sultan Maulana Hasanuddin Banten, Indonesia
  • Setia Mulyawan UIN Sunan Gunung Djati Bandung, Indonesia
  • Surahman UIN Sultan Maulana Hasanuddin Banten, Indonesia
  • Dede Sudirja UIN Sultan Maulana Hasanuddin Banten, Indonesia

Keywords

Educational Inequality, Human Capital Accumulation, Middle Income Trap, Labor Market Segmentation, Digital Economy.

Abstract

Many middle-income countries encounter substantial obstacles to attaining developed-economy status due to the structural phenomenon known as the Middle-Income Trap. A primary factor contributing to this challenge is the low quality and unequal access to education, which impedes the development of high-quality human capital. This article examines the mechanisms by which educational inequality fosters labor market segmentation and sustains the low-growth trap. A comprehensive literature review demonstrates that exclusive education systems exacerbate income inequality, confining poor communities and rural areas to persistent low wages and limited productivity. In contrast, increased investment in inclusive basic and higher education, integration of digital skills, and comprehensive labor market reforms are identified as essential strategies for overcoming this economic trap.

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