Protecting Education for the Poor in Times of Crisis: an Evaluation of a Scholarship Program in Indonesia

Robert Sparrow • Robert Sparrow
Working paper SMERU Research Institute • June 2004 Indonesia

Abstract

This paper analyzes the impact of an Indonesian scholarship program, which was implemented to preserve access to education for the poor during the southeast asian economic crisis. allocation followed a decentralized design that involved both geographic and individual targeting. the identification strategy exploits this decentralised structure, relying on instrumental variables constructed from regional miss-tergeting at the initial phase of allocation. the results show that allocation of scholarships was pro-poor, but with substantial leakage to the non-poor. the program has been sucessful in increasing enrolment, especially for primary school aged children from poor rural households. moreover, the scholarships seem to have assisted households in smooting consumption during the crisis, relieving pressure on households' investments in education and utilization of child labour. jel classification: i28, j22, o15 keywords: social safety net, program evaluation, education, child labour, asian economic crisis

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SMERU Research Institute

Since its establishment in 2001, SMERU has been a leader in poverty and inequality research in In... see more