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Cumulative Impacts of Conditional Cash Transfer Programs: Experimental Evidence from Indonesia

Author

Listed:
  • Nur Cahyadi
  • Rema Hanna
  • Benjamin A. Olken
  • Rizal Adi Prima
  • Elan Satriawan
  • Ekki Syamsulhakim

Abstract

Conditional cash transfers provide income and promote human capital investments. Yet evaluating their longitudinal impacts is hard, as most experimental evaluations treat control locations after a few years. We examine such impacts in Indonesia after six years, where the program rollout left the experiment largely intact. We find static effects on many targeted indicators: childbirth using trained professionals increased dramatically, and under-15 children not in school fell by half. We observe impacts requiring cumulative investments: stunting fell by 23 percent. While human capital accumulation increased, the transfers did not lead to transformative economic change for recipient households.

Suggested Citation

  • Nur Cahyadi & Rema Hanna & Benjamin A. Olken & Rizal Adi Prima & Elan Satriawan & Ekki Syamsulhakim, 2020. "Cumulative Impacts of Conditional Cash Transfer Programs: Experimental Evidence from Indonesia," American Economic Journal: Economic Policy, American Economic Association, vol. 12(4), pages 88-110, November.
  • Handle: RePEc:aea:aejpol:v:12:y:2020:i:4:p:88-110
    DOI: 10.1257/pol.20190245
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    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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