Heterogenous Impact of ‘Rice for the Poor’ Program in Indonesia
This study evaluates the impact of the ‘Rice for the Poor’ program – an almost universal program of Indonesian Social Safety Net Program in the time of economic crisis. The program aimed to protect poor households from the negative effects of economic crisis through providing highly subsidized rice price. To assess the impact of the ‘Rice for the Poor’ program, this study utilizes matching estimator approach combined with difference in difference method. The rich longitudinal dataset used in this study enables matching estimator and difference in difference approach to provide accurate estimate of the program’s impact on its beneficiaries. Heterogeneous impact of the program shows that the program has a limited impact on the neediest group. It is found that the ‘Rice for the Poor’ program has a limited impact on the bottom income households. The program has only enabled the poorest households to increase their meat and dairy products expenditures though the treatment effect is very large. The ‘Rice for the Poor’ program has also led to an unintended impact where non targeted households have gained more from the program. The findings suggest that applying conditionality might reduce the errors of inclusion and give more desirable effects for the poor.
|Date of creation:||Apr 2012|
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