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Does Conditional Cash Transfer Have a Lasting Impact?: Evidence from Indonesia

Author

Listed:
  • Faradilla Rahma Sari

    (Master of Science and Doctorate, Faculty of Economics and Business, Universitas Gadjah Mada)

  • Diyah Putriani

    (Department of Economics, Faculty of Economics and Business, Universitas Gadjah Mada)

  • Wisnu Setiadi Nugroho

    (Department of Economics, Faculty of Economics and Business, Universitas Gadjah Mada)

Abstract

This study aims to estimate the impact of program cessation on the behavior of Program Keluarga Harapan (PKH) beneficiaries. We utilize the Propensity Score Matching (PSM) and Difference-in-Differences (DID) models to overcome potential bias in the estimation results. We use household longitudinal data from the PKH implementation pilot study. The results show that program cessation has a significant positive impact on the share of expenditure on food and the probability of children not attending school, as well as reducing the share of expenditure on education. On the other hand, program cessation has no impact on the utilization of health services, the share of expenditure on health, and the share of expenditure on milk and eggs. These findings indicate that the impact of PKH on behavior related to health tends to continue, while for behavior related to education it does not.

Suggested Citation

  • Faradilla Rahma Sari & Diyah Putriani & Wisnu Setiadi Nugroho, 2023. "Does Conditional Cash Transfer Have a Lasting Impact?: Evidence from Indonesia," Gadjah Mada Economics Working Paper Series 202312011, Department of Economics, Faculty of Economics and Business, Universitas Gadjah Mada.
    • Handle: RePEc:gme:wpaper:202312011
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    References listed on IDEAS

    as
    1. Orazio P. Attanasio & Veruska Oppedisano & Marcos Vera-Hernández, 2015. "Should Cash Transfers Be Conditional? Conditionality, Preventive Care, and Health Outcomes," American Economic Journal: Applied Economics, American Economic Association, vol. 7(2), pages 35-52, April.
    2. Toshiaki Aizawa, 2020. "Joint Impact of the Conditional Cash Transfer on Child Nutritional Status and Household Expenditure in Indonesia," Journal of Human Capital, University of Chicago Press, vol. 14(1), pages 122-164.
    3. Bruce Wydick & Paul Glewwe & Laine Rutledge, 2013. "Does International Child Sponsorship Work? A Six-Country Study of Impacts on Adult Life Outcomes," Journal of Political Economy, University of Chicago Press, vol. 121(2), pages 393-436.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Intergenerational Transfer; Transfers; Welfare; Poverty; Health; Education;
    All these keywords.

    JEL classification:

    • D15 - Microeconomics - - Household Behavior - - - Intertemporal Household Choice; Life Cycle Models and Saving
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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