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Examining the Efficacy of Conditional Cash Transfer Programs in Reducing Poverty in Yogyakarta, Indonesia

Author

Listed:
  • Nuryadin, Didi

    (Universitas Pembangunan Nasional “Veteran” Yogyakarta, Indonesia)

  • Sultan, .

    (Universitas Pembangunan Nasional “Veteran” Yogyakarta, Indonesia)

  • Umaroh, Rodhiah

    (Universitas Pembangunan Nasional “Veteran” Yogyakarta, Indonesia)

  • Darpito, Surpiko Hapsoro

    (Universitas Pembangunan Nasional “Veteran” Yogyakarta, Indonesia)

  • Rahmanda, Gita Astyka

    (Universitas Pembangunan Nasional “Veteran” Yogyakarta, Indonesia)

  • Cesario, Ida Bagus Putu

    (Universitas Pembangunan Nasional “Veteran” Yogyakarta, Indonesia)

Abstract

Yogyakarta province in Indonesia plagued with persistent poverty challenges for decades. There were several ways to reduce its poverty rate; one is through conditional cash transfer (CCT) scheme. This study aims to measure the impact of CCT program of Family Hope Program (PKH) on hosuehold poverty proxied by food and non-food consumption expenditure using Propensity Score Matching (PSM) method. Using a large scale of survey data, this study disagregated the estimation in urban-rural areas. The result revealed that the PKH program has been successful in reducing poverty in impoverished households by significantly increasing their food and non-food consumption expenses. The program has had a more significant effect in rural regions than in urban. The impact is more profound in increasing food consumption expenditure. This underscores the program's effectiveness and the importance of its continuation or expansion to combat poverty further and improve the welfare of vulnerable households.

Suggested Citation

  • Nuryadin, Didi & Sultan, . & Umaroh, Rodhiah & Darpito, Surpiko Hapsoro & Rahmanda, Gita Astyka & Cesario, Ida Bagus Putu, 2023. "Examining the Efficacy of Conditional Cash Transfer Programs in Reducing Poverty in Yogyakarta, Indonesia," Journal of Economic Development, The Economic Research Institute, Chung-Ang University, vol. 48(4), pages 141-153, December.
    • Handle: RePEc:ris:jecdev:0076
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    More about this item

    Keywords

    Family Hope Program; Poverty; Propensity Score Matching; Consumption Expenditure;
    All these keywords.

    JEL classification:

    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • F61 - International Economics - - Economic Impacts of Globalization - - - Microeconomic Impacts
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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