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Can a public scholarship program successfully reduce school drop-outs in a time of economic crisis? Evidence from Indonesia

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  • Cameron, Lisa

Abstract

This paper evaluates the role played by Indonesia's Social Safety Net Scholarships Program in reducing school drop-out rates during the Asian financial crisis. The expectation was that many families would find it difficult to keep their children in school and drop-out rates would be high. The scholarships are found to have been effective in reducing drop-outs at the level of schooling at which students were historically most at the risk of dropping out--lower secondary school. At this level drop-outs were reduced by about 3.0% points (or 38%) and costs were recovered. Given its success, the program can be viewed as a model to be followed by other countries that find themselves in a similar situation of crisis. How well the program adhered to its documented targeting design and how effective this design was in reaching the poor is also examined.

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Bibliographic Info

Article provided by Elsevier in its journal Economics of Education Review.

Volume (Year): 28 (2009)
Issue (Month): 3 (June)
Pages: 308-317

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Handle: RePEc:eee:ecoedu:v:28:y:2009:i:3:p:308-317

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Web page: http://www.elsevier.com/locate/econedurev

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Keywords: Program evaluation Scholarships Education policy;

References

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  1. Gavin Jones & Peter Hagul, 2001. "Schooling In Indonesia: Crisis-Related And Longer-Term Issues," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 37(2), pages 207-231.
  2. Jalan, Jyotsna & Ravallion, Martin, 2003. "Does piped water reduce diarrhea for children in rural India?," Journal of Econometrics, Elsevier, vol. 112(1), pages 153-173, January.
  3. Eliana Cardoso & Andre Portela Souza, 2004. "The Impact of Cash Transfers on Child Labor and School Attendance in Brazil," Vanderbilt University Department of Economics Working Papers 0407, Vanderbilt University Department of Economics.
  4. Jyotsna Jalan & Martin Ravallion, 2000. "Estimating the Benefit Incidence of an Antipoverty Program by Propensity Score Matching," Econometric Society World Congress 2000 Contributed Papers 0873, Econometric Society.
  5. Paul Schultz, T., 2004. "School subsidies for the poor: evaluating the Mexican Progresa poverty program," Journal of Development Economics, Elsevier, vol. 74(1), pages 199-250, June.
  6. Joshua D. Angrist, 2000. "Estimation of Limited-Dependent Variable Models with Dummy Endogenous Regressors: Simple Strategies for Empirical Practice," NBER Technical Working Papers 0248, National Bureau of Economic Research, Inc.
  7. Skoufias, Emmanuel, 2005. "PROGRESA and its impacts on the welfare of rural households in Mexico:," Research reports 139, International Food Policy Research Institute (IFPRI).
  8. Norbert R. Schady, 2004. "Do Macroeconomic Crises Always Slow Human Capital Accumulation?," World Bank Economic Review, World Bank Group, vol. 18(2), pages 131-154.
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Cited by:
  1. Furio Camillo Rosati & Jacobus de Hoop, 2013. "Does Promoting School Attendance Reduce Child Labour? Evidence from Burkina Faso’s Bright Project," CEIS Research Paper 282, Tor Vergata University, CEIS, revised 14 May 2014.

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