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Impact Assessment of Social Assistance for Education on Welfare Distribution: A Microsimulation Approach Using INDOMOD

Author

Listed:
  • Achmad, Budi
  • Rina, Karlina
  • Retno, Maruti
  • Galuh, Chandra
  • Yiska, Dini

Abstract

Social assistance for education is one of several instruments in Indonesia to support poor and vulnerable people. There are two main programs which is Family Hope Program (PKH) and Smart Indonesia Program (PIP). Analyzing the distributional impact to both programs is very important to improve program’s effectiveness and efficiency. INDOMOD, a tax-benefit microsimulation model for Indonesia, was used in this study to evaluate the distributional effect of these programs to poverty and inequality, using Susenas as the main data. Several results from this study showed that the revocation of the education component of PKH has a more significant impact on poor and vulnerable groups than the revocation of PIP. Further, the revocation of the education component of PKH has a more significant effect on households with children than the revocation of PKH.

Suggested Citation

  • Achmad, Budi & Rina, Karlina & Retno, Maruti & Galuh, Chandra & Yiska, Dini, 2025. "Impact Assessment of Social Assistance for Education on Welfare Distribution: A Microsimulation Approach Using INDOMOD," Centre for Microsimulation and Policy Analysis Working Paper Series CEMPA1/25, Centre for Microsimulation and Policy Analysis at the Institute for Social and Economic Research.
  • Handle: RePEc:ese:cempwp:cempa1-25
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    References listed on IDEAS

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    2. Christos Koutsampelas & Panos Tsakloglou, 2011. "Short-run distributional effects of public education in Greece," University of Cyprus Working Papers in Economics 12-2011, University of Cyprus Department of Economics.
    3. Holly Sutherland & Francesco Figari, 2013. "EUROMOD: the European Union tax-benefit microsimulation model," International Journal of Microsimulation, International Microsimulation Association, vol. 1(6), pages 4-26.
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