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

Faradilla Rahma Sari (), Diyah Putriani () and Wisnu Setiadi Nugroho
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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

No 202312011, Gadjah Mada Economics Working Paper Series from 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.

Keywords: Intergenerational Transfer; Transfers; Welfare; Poverty; Health; Education (search for similar items in EconPapers)
JEL-codes: D15 I38 (search for similar items in EconPapers)
Pages: 22 pages
Date: 2023-12
New Economics Papers: this item is included in nep-hea and nep-sea
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