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Targeting Poverty under Complementarities: Evidence from Indonesia's Unified Targeting System

Achmad Tohari (), Christopher Parsons () and Anu Rammohan ()
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Achmad Tohari: University of Western Australia
Christopher Parsons: University of Western Australia
Anu Rammohan: University of Western Australia

No 10968, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: Combining nationally representative administrative and survey data with official proxy means testing models and coefficients, we evaluate Indonesia's three largest social programs. The setting for our evaluation is the launch of Indonesia's Unified Targeting system, an innovation developed to reduce targeting errors and increase program complementarities. Introducing a new method of evaluation under the condition of multiple programs, we show that households receiving all three programs are at least 30 percentage points better off than those receiving none. Importantly, the bias from failing to account for program complementarities is greater in magnitude than the benefits of receiving a single program.

Keywords: poverty; targeting; Indonesia; complementarities (search for similar items in EconPapers)
JEL-codes: D04 I32 I38 O12 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dev and nep-sea
Date: 2017-08
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