Cash Transfers and Violent Crime in Indonesia

77 Pages Posted: 29 Mar 2023 Last revised: 8 Mar 2024

See all articles by Elías Cisneros

Elías Cisneros

University of Texas at Dallas - School of Economic, Political and Policy Sciences

Krisztina Kis-Katos

University of Goettingen (Göttingen)

Jan Priebe

Bernhard Nocht Institute for Tropical Medicine

Lennart Reiners

University of Göttingen

Date Written: March 7, 2024

Abstract

This study investigates the impact of Indonesia’s flagship conditional cash trans- fer (CCT) program—PKH—on violent crime. Exploiting data from a randomized controlled trial and administrative data from the staggered nationwide program roll-out in combination with different causal identification strategies, we show that communities receiving access to the CCT experienced an increase in violent crime. Examining possible mechanisms, our analysis reveals that the program resulted in an increase in idleness among non-targeted young men within beneficiary house- holds, which we believe contributed to the rise in violent crime. In contrast, we show that the surge in violent crime is neither related to PKH increasing the (monetary and non-monetary) rewards for committing crime nor to alternative reductions in the (material, psychic, punishment-related) costs of engaging in crimes.

Keywords: conditional cash transfer, crime, youth, Indonesia

JEL Classification: D62, H53, I38, O12

Suggested Citation

Cisneros, Elías and Kis-Katos, Krisztina and Priebe, Jan and Reiners, Lennart, Cash Transfers and Violent Crime in Indonesia (March 7, 2024). Available at SSRN: https://ssrn.com/abstract=4381722 or http://dx.doi.org/10.2139/ssrn.4381722

Elías Cisneros (Contact Author)

University of Texas at Dallas - School of Economic, Political and Policy Sciences ( email )

P.O. Box 830688, GR 31
Richardson, TX 75083
United States

Krisztina Kis-Katos

University of Goettingen (Göttingen) ( email )

Jan Priebe

Bernhard Nocht Institute for Tropical Medicine ( email )

Lennart Reiners

University of Göttingen ( email )

Wilhelmsplatz 1
Göttingen, 37073
Germany

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
297
Abstract Views
849
Rank
191,532
PlumX Metrics