The Effect of Quarantining Welfare on School Attendance in Indigenous Communities
Deborah A. Cobb-Clark (),
Nathan Kettlewell (),
Stefanie Schurer () and
Sven Silburn ()
Additional contact information
Deborah A. Cobb-Clark: University of Sydney
Stefanie Schurer: University of Sydney
Sven Silburn: Menzies School of Health Research
No 11514, IZA Discussion Papers from Institute for the Study of Labor (IZA)
We analyze the impact of a recent initiative by the Australian Government to reduce disadvantage and improve children's welfare in Aboriginal communities. The policy – known as income management – quarantines 50 percent of welfare payments to be spent on priority goods (e.g., food, housing, education) and not on socially harmful goods (drugs, pornography, gambling). Our focus is on children's school attendance, which is a precise, high-frequency measure of community functionality and a key policy objective. We identify the causal impact of income management on attendance rates by exploiting exogenous variation in its staggered rollout across communities. We find no evidence that income management increased attendance. Rather, the introduction of income management reduced attendance by 2.7 percentage points (4 percent) on average in the first five months after which attendance eventually returned to its initial level. The attendance penalty is similar for boys and girls, but is larger for secondary school students and students with a tendency to attend school regularly. Exploring the potential mechanisms, we show that income management did not significantly affect student enrollments or mobility patterns into and out of Aboriginal communities. Nor are our results explained by confoundedness with other policy initiatives. Instead, we find that the attendance penalty associated with the introduction of income management is virtually zero after the adoption of more exible administrative arrangements suggesting that implementation issues may be responsible for the temporary reduction in school attendance that we observe.
Keywords: income management; in-kind transfers; policy evaluation; Indigenous disadvantage; welfare quarantining (search for similar items in EconPapers)
JEL-codes: D04 I28 I38 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:iza:izadps:dp11514
Ordering information: This working paper can be ordered from
IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany
Access Statistics for this paper
More papers in IZA Discussion Papers from Institute for the Study of Labor (IZA) IZA, P.O. Box 7240, D-53072 Bonn, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Mark Fallak ().