Can Mistargeting Destroy Social Capital and Stimulate Crime? Evidence from a Cash Transfer Program in Indonesia
AbstractCash transfer programs can provide important financial support for poor households in developing countries and are becoming increasingly common. However the potential for mistargeting of program funds is high. This paper focuses on the social consequences arising from misallocation of resources in close knit communities. We find that the mistargeting of a cash transfer program in Indonesia is significantly associated with increases in crime and declines in social capital within communities. Hence poorly administered transfer programs have a potentially large negative downside that extends beyond the pure financial costs that have been the focus of the literature to date.
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Bibliographic InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 6736.
Length: 47 pages
Date of creation: Jul 2012
Date of revision:
Publication status: forthcoming in: Economic Development and Cultural Change
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Find related papers by JEL classification:
- O12 - Economic Development, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
- O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
- I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-07-29 (All new papers)
- NEP-DEV-2012-07-29 (Development)
- NEP-SEA-2012-07-29 (South East Asia)
- NEP-SOC-2012-07-29 (Social Norms & Social Capital)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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- John Gibson & Bonggeun Kim, 2006. "Measurement Error and the Effect of Inequality on Experienced versus Reported Crime," Working Papers in Economics 06/05, University of Waikato, Department of Economics.
- Demombynes, Gabriel & Ozler, Berk, 2002.
"Crime and local inequality in South Africa,"
Policy Research Working Paper Series
2925, The World Bank.
- Muliadi Widjaja, 2013. "An Economic and Social Review on Indonesiaâ€™s Direct Cash Transfer Program to Poor Families in 2005," Working Papers in Economics and Business 201304, Faculty of Economics, University of Indonesia, revised Apr 2013.
- World Bank, 2006. "Making the New Indonesia Work for the Poor," World Bank Other Operational Studies 8172, The World Bank.
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