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

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  • Cameron, Lisa

Abstract

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.

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  • 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

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    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. 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.
    3. 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.
    4. Sandra García & Juan Saavedra, 2017. "Educational Impacts and Cost-Effectiveness of Conditional Cash Transfer Programs in Developing Countries: A Meta-Analysis," NBER Working Papers 23594, National Bureau of Economic Research, Inc.

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