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Protecting Education for the Poor in Times of Crisis: An Evaluation of a Scholarship Programme in Indonesia

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  • Robert Sparrow

Abstract

This paper analyses the impact of an Indonesian scholarship programme, which was implemented in 1998 to preserve access to education for the poor during the economic crisis. Scholarships were targeted pro‐poor and the allocation process followed a decentralized design, involving both geographic and individual targeting. The identification strategy exploits this decentralized structure, relying on instrumental variables constructed from regional mistargeting at the initial phase of allocation. The programme has increased enrolment, especially for primary school‐aged children from poor rural households. Moreover, the scholarships seem to have assisted households in smoothing consumption during the crisis, relieving pressure on households’ investments in education and utilization of child labour.

Suggested Citation

  • Robert Sparrow, 2007. "Protecting Education for the Poor in Times of Crisis: An Evaluation of a Scholarship Programme in Indonesia," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 69(1), pages 99-122, February.
    • Handle: RePEc:bla:obuest:v:69:y:2007:i:1:p:99-122
    DOI: 10.1111/j.1468-0084.2006.00438.x
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    References listed on IDEAS

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    1. Canagarajah, Sudharshan & Coulombe, Harold, 1997. "Child labor and schooling in Ghana," Policy Research Working Paper Series 1844, The World Bank.
    2. Cameron, Lisa A., 2002. "Did social safety net scholarships reduce drop-out rates during the Indonesian economic crisis?," Policy Research Working Paper Series 2800, The World Bank.
    3. Rawlings, Laura B. & Rubio, Gloria M., 2003. "Evaluating the impact of conditional cash transfer programs : lessons from Latin America," Policy Research Working Paper Series 3119, The World Bank.
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    More about this item

    JEL classification:

    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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