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Did social safety net scholarships reduce drop-out rates during the Indonesian economic crisis?

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Author Info

  • Cameron, Lisa A.

Abstract

The author uses regression and matching techniques to evaluate Indonesia's Social Safety Net Scholarships Program, which was developed to keep large numbers of children from dropping out of school as a result of the Asian crisis. It was expected that many families would find it difficult to keep their children in school and that dropout rates would be high, as they were during a recession in the 1980s. But dropouts did not increase markedly and enrollment rates remained relatively steady. The author examines the role the scholarship program played in producing this result. She found the scholarships to have been effective in reducing dropouts in the lower secondary school (where students are more susceptible to dropping out) by about 3 percentage points. They had no discernible impact in primary and upper secondary schools. The author also examines how well the program adhered to its documented targeting design and how effective that design was in reaching the poor. Committees that allocated the scholarships followed the criteria diligently, but a significant percentage of scholarships did go to students from households with high reported per capita expenditures, if household expenditure data are reliable. It is unclear how targeting can be improved, giving the scarcity of accurate local household data in most countries. Using local monitoring could help but then monitoring for accountability would be more difficult. Preliminary evidence favors focusing safety net scholarships--designed to reduce dropout rates during an economic crisis--on lower secondary schools, continuing to target children (especially older students) from large families, scaling back scholarships to private schools at the lower secondary level, or targeting the households hurt most by the crisis.

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Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 2800.

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Date of creation: 31 Mar 2002
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Handle: RePEc:wbk:wbrwps:2800

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Keywords: Health Monitoring&Evaluation; Public Health Promotion; Teaching and Learning; Information Technology; Housing&Human Habitats; Health Monitoring&Evaluation; Teaching and Learning; Information Technology; Housing&Human Habitats; Primary Education;

References

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  1. Jalan, Jyotsna & Ravallion, Martin, 1999. "Income gains to the poor from workfare - estimates for Argentina's TRABAJAR Program," Policy Research Working Paper Series 2149, The World Bank.
  2. Ravallion, Martin & Wodon, Quentin, 1999. "Does child labor displace schooling? - evidence on behavioral responses to an enrollment subsidy," Policy Research Working Paper Series 2116, The World Bank.
  3. Smith, Richard J & Blundell, Richard W, 1986. "An Exogeneity Test for a Simultaneous Equation Tobit Model with an Application to Labor Supply," Econometrica, Econometric Society, Econometric Society, vol. 54(3), pages 679-85, May.
  4. Heckman, James J & Ichimura, Hidehiko & Todd, Petra, 1998. "Matching as an Econometric Evaluation Estimator," Review of Economic Studies, Wiley Blackwell, Wiley Blackwell, vol. 65(2), pages 261-94, April.
  5. Joshua Angrist, 1999. "Estimation of Limited-Dependent Variable Models with Dummy Endogenous Regressors: Simple Strategies for Empirical Practice," Working papers, Massachusetts Institute of Technology (MIT), Department of Economics 99-31, Massachusetts Institute of Technology (MIT), Department of Economics.
  6. Sumarto, Sudarno & Suryahadi, Asep & Pritchett, Lant, 2003. "Safety Nets or Safety Ropes? Dynamic Benefit Incidence of Two Crisis Programs in Indonesia," World Development, Elsevier, Elsevier, vol. 31(7), pages 1257-1277, July.
  7. Ravallion, Martin, 1999. "Themystery of the vanishing benefits : Ms. Speedy Analyst's introduction to evaluation," Policy Research Working Paper Series 2153, The World Bank.
  8. James Heckman & Hidehiko Ichimura & Jeffrey Smith & Petra Todd, 1998. "Characterizing Selection Bias Using Experimental Data," Econometrica, Econometric Society, Econometric Society, vol. 66(5), pages 1017-1098, September.
  9. Kathleen Beegle & Elizabeth Frankenberg & Duncan Thomas, 1999. "Measuring Change in Indonesia," Working Papers, RAND Corporation Publications Department 99-07, RAND Corporation Publications Department.
  10. Rivers, Douglas & Vuong, Quang H., 1988. "Limited information estimators and exogeneity tests for simultaneous probit models," Journal of Econometrics, Elsevier, Elsevier, vol. 39(3), pages 347-366, November.
  11. Lisa A. Cameron, 2001. "The Impact of the Indonesian Financial Crisis on Children: An analysis using the 100 villages data," Innocenti Working Papers inwopa01/10, UNICEF Innocenti Research Centre.
  12. Pitt, Mark M & Rosenzweig, Mark R & Gibbons, Donna M, 1993. "The Determinants and Consequences of the Placement of Government Programs in Indonesia," World Bank Economic Review, World Bank Group, World Bank Group, vol. 7(3), pages 319-48, September.
  13. Kenneth Bollen & David Guilkey & Thomas Mroz, 1995. "Binary outcomes and endogenous explanatory variables: Tests and solutions with an application to the demand for contraceptive use in tunisia," Demography, Springer, Springer, vol. 32(1), pages 111-131, February.
  14. Heckman, James J & Ichimura, Hidehiko & Todd, Petra E, 1997. "Matching as an Econometric Evaluation Estimator: Evidence from Evaluating a Job Training Programme," Review of Economic Studies, Wiley Blackwell, Wiley Blackwell, vol. 64(4), pages 605-54, October.
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Citations

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Cited by:
  1. Pritchett, Lant, 2005. "The political economy of targeted safety nets," Social Protection Discussion Papers 31498, The World Bank.
  2. Agus Priyambada & Asep Suryahadi & Sudarno Sumarto, 2005. "What Happened to Child Labor in Indonesia during the Economic Crisis : The Trade-off between School and Work," Labor Economics Working Papers 22535, East Asian Bureau of Economic Research.
  3. Elisabetta Magnani & Garima Verma & Anu Rammohan, 2012. "Intra-household Competition for Care: The Role of Bequest-regulating Social Norms," Working Papers, ARC Centre of Excellence in Population Ageing Research (CEPAR), Australian School of Business, University of New South Wales 201206, ARC Centre of Excellence in Population Ageing Research (CEPAR), Australian School of Business, University of New South Wales.
  4. Ariel Fiszbein & Norbert Schady & Francisco H. G. Ferreira & Margaret Grosh & Niall Keleher & Pedro Olinto & Emmanuel Skoufias, 2009. "Conditional Cash Transfers : Reducing Present and Future Poverty," World Bank Publications, The World Bank, number 2597, August.
  5. Margaret Grosh & Carlo del Ninno & Emil Tesliuc & Azedine Ouerghi, 2008. "For Protection and Promotion : The Design and Implementation of Effective Safety Nets," World Bank Publications, The World Bank, number 6582, August.
  6. Bruno Martorano & Chris De Neubourg & Marco Sanfilippo & UNICEF Innocenti Research Centre, 2012. "The Impact of Social Protection on Children: A review of the literature," Innocenti Working Papers inwopa666, UNICEF Innocenti Research Centre.
  7. L. Alan Winters & Neil McCulloch & Andrew McKay, 2004. "Trade Liberalization and Poverty: The Evidence So Far," Journal of Economic Literature, American Economic Association, vol. 42(1), pages 72-115, March.
  8. World Bank, 2012. "History and Evolution of Social Assistance in Indonesia," World Bank Other Operational Studies 12259, The World Bank.

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