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


  • Cameron, Lisa


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.

Suggested Citation

  • Cameron, Lisa, 2009. "Can a public scholarship program successfully reduce school drop-outs in a time of economic crisis? Evidence from Indonesia," Economics of Education Review, Elsevier, vol. 28(3), pages 308-317, June.
  • Handle: RePEc:eee:ecoedu:v:28:y:2009:i:3:p:308-317

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    References listed on IDEAS

    1. 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.
    2. 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.
    3. Angrist, Joshua D, 2001. "Estimations of Limited Dependent Variable Models with Dummy Endogenous Regressors: Simple Strategies for Empirical Practice," Journal of Business & Economic Statistics, American Statistical Association, vol. 19(1), pages 2-16, January.
    4. 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.
    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. Jalan, Jyotsna & Ravallion, Martin, 2003. "Estimating the Benefit Incidence of an Antipoverty Program by Propensity-Score Matching," Journal of Business & Economic Statistics, American Statistical Association, vol. 21(1), pages 19-30, January.
    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).
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    Cited by:

    1. Giles, John & Satriawan, Elan, 2015. "Protecting child nutritional status in the aftermath of a financial crisis: Evidence from Indonesia," Journal of Development Economics, Elsevier, vol. 114(C), pages 97-106.
    2. de Hoop, Jacobus & Rosati, Furio C., 2014. "Does promoting school attendance reduce child labor? Evidence from Burkina Faso's BRIGHT project," Economics of Education Review, Elsevier, vol. 39(C), pages 78-96.
    3. Saavedra, Juan Esteban & Garcia, Sandra, 2012. "Impacts of Conditional Cash Transfer Programs on Educational Outcomes in Developing Countries: A Meta-analysis," Working Papers 921-1, RAND Corporation.


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