Protecting Education for the Poor in Times of Crisis: An Evaluation of a Scholarship Programme in Indonesia

24 Pages Posted: 7 Feb 2007

See all articles by Robert A. Sparrow

Robert A. Sparrow

Wageningen UR - Development Economics Group; Erasmus University Rotterdam (EUR) - Institute of Social Studies (ISS); IZA Institute of Labor Economics

Abstract

This paper analyses the impact of an Indonesian scholarship programme, which was implemented in 1998 to preserve access to education for the poor during the economic crisis. Scholarships were targeted pro-poor and the allocation process followed a decentralized design, involving both geographic and individual targeting. The identification strategy exploits this decentralized structure, relying on instrumental variables constructed from regional mistargeting at the initial phase of allocation. The programme has increased enrolment, especially for primary school-aged children from poor rural households. Moreover, the scholarships seem to have assisted households in smoothing consumption during the crisis, relieving pressure on households' investments in education and utilization of child labour.

Suggested Citation

Sparrow, Robert A., Protecting Education for the Poor in Times of Crisis: An Evaluation of a Scholarship Programme in Indonesia. Oxford Bulletin of Economics and Statistics, Vol. 69, No. 1, pp. 99-122, February 2007. Available at SSRN: https://ssrn.com/abstract=961717 or http://dx.doi.org/10.1111/j.1468-0084.2006.00438.x

Robert A. Sparrow (Contact Author)

Wageningen UR - Development Economics Group ( email )

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Erasmus University Rotterdam (EUR) - Institute of Social Studies (ISS) ( email )

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IZA Institute of Labor Economics

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