IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/59759.html
   My bibliography  Save this paper

Finding the Poor vs. Measuring Their Poverty: Exploring the Drivers of Targeting Effectiveness in Indonesia

Author

Listed:
  • Bah, Adama
  • Bazzi, Samuel
  • Sumarto, Sudarno
  • Tobias, Julia

Abstract

Centralised targeting registries are increasingly used to allocate social assistance benefits in developing countries. This paper provides the first attempt to identify the relative importance of two key design issues for targeting accuracy: (1) which households to survey for inclusion in the targeting registry and (2) how to rank surveyed households. We evaluate the performance of Indonesia’s Unified Database for Social Protection Programmes (UDB), the largest targeting registry in the world, which is used to provide social assistance to more than 25 million households. Linking administrative data with an independent household survey, we find that the UDB system is more progressive than previous targeting approaches used in Indonesia, leading to a decrease in benefit leakage to non-poor households. However, if poor households are not surveyed in the first place, even a perfect ranking method cannot prevent their exclusion. Under a simulation that considers enumerating and estimating proxy-means testing (PMT) scores for all households (as in a census), we estimate a one-third decrease in undercoverage compared to focusing on households that have been registered in the UDB. Investigating household- and community-level correlates of misenumeration and misclassification, we find evidence that local communities use different definitions of poverty and have better information on the welfare status of their members.

Suggested Citation

  • Bah, Adama & Bazzi, Samuel & Sumarto, Sudarno & Tobias, Julia, 2014. "Finding the Poor vs. Measuring Their Poverty: Exploring the Drivers of Targeting Effectiveness in Indonesia," MPRA Paper 59759, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:59759
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/59759/8/MPRA_paper_59759.pdf
    File Function: original version
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. David Coady & Emmanuel Skoufias, 2004. "On the Targeting and Redistributive Efficiencies of Alternative Transfer Instruments," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 50(1), pages 11-27, March.
    2. Vivi Alatas & Abhijit Banerjee & Rema Hanna & Benjamin A. Olken & Julia Tobias, 2012. "Targeting the Poor: Evidence from a Field Experiment in Indonesia," American Economic Review, American Economic Association, vol. 102(4), pages 1206-1240, June.
    3. Paul Niehaus & Antonia Atanassova & Marianne Bertrand & Sendhil Mullainathan, 2013. "Targeting with Agents," American Economic Journal: Economic Policy, American Economic Association, vol. 5(1), pages 206-238, February.
    4. repec:dau:papers:123456789/4335 is not listed on IDEAS
    5. Rema Hanna & Vivi Alatas & Abhijit Banerjee & Benjamin A. Olken & Ririn Purnamasari & Matthew Wai-Poi, 2013. "Does Elite Capture Matter? Local Elites and Targeted Welfare Programs in Indonesia," CID Working Papers 255, Center for International Development at Harvard University.
    6. Christophe Muller & Sami Bibi, 2010. "Refining Targeting against Poverty Evidence from Tunisia," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 72(3), pages 381-410, June.
    7. Sudarno Sumarto & Daniel Suryadarma & Asep Suryahadi, 2007. "Predicting Consumption Poverty using Non-Consumption Indicators: Experiments using Indonesian Data," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 81(3), pages 543-578, May.
    8. Skoufias, Emmanuel & Davis, Benjamin & de la Vega, Sergio, 2001. "Targeting the Poor in Mexico: An Evaluation of the Selection of Households into PROGRESA," World Development, Elsevier, vol. 29(10), pages 1769-1784, October.
    9. Adriana Camacho & Emily Conover, 2011. "Manipulation of Social Program Eligibility," American Economic Journal: Economic Policy, American Economic Association, vol. 3(2), pages 41-65, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Adama Bah & Suahasil Nazara & Elan Satriawan, 2015. "Registro Único de Indonesia para los programas de protección social," Policy Research Brief 49, International Policy Centre for Inclusive Growth.
    2. Tohari, Achmad & Parsons, Christopher & Rammohan, Anu, 2017. "Targeting Poverty under Complementarities: Evidence from Indonesia's Unified Targeting System," IZA Discussion Papers 10968, Institute for the Study of Labor (IZA).

    More about this item

    Keywords

    Targeting; Proxy-Means Testing; Social Protection; Poverty;

    JEL classification:

    • D1 - Microeconomics - - Household Behavior
    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:59759. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Joachim Winter). General contact details of provider: http://edirc.repec.org/data/vfmunde.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.