This chapter focuses on inclusive growth. The negative effect of income inequality on PISA scores is more closely reviewed by decomposing the total sample into two groups in order to see the degree of sensitivity of public provision of education services. Additionally, regional disparities will be explained under the frame of fiscal decentralisation. The empirical relationship between fiscal decentralisation and education expenditure/performance points out that education may be a more highly prioritised sector through the budget process in region/municipalities governments. This section constructs a stylised model to capture how decentralisation affects education outcomes.