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Impacts of Conditionality on Consumption: Evidence from the Family Hope Program in Indonesia

Author

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  • Hartarto, Romi Bhakti
  • LeMay-Boucher, Philippe

Abstract

Research has shown that the Indonesian Family Hope CCT Program aimed at improving children's health and education of poor households, has had significant impacts. Using different data, we assess whether it changed recipients' behaviour along other metrics. Despite checks and constraints on how transfers can be spent, low-income families can still spend some of their extra cash on frivolous goods, rather than health and education as intended. Our results show that the program leads recipients to mildly decrease their levels of frivolous consumption and increase their share of spending on education (not for health) when compared to non-participants.

Suggested Citation

  • Hartarto, Romi Bhakti & LeMay-Boucher, Philippe, 2024. "Impacts of Conditionality on Consumption: Evidence from the Family Hope Program in Indonesia," Accountancy, Economics, and Finance Working Papers 2024-03, Heriot-Watt University, Department of Accountancy, Economics, and Finance.
    • Handle: RePEc:zbw:hwuaef:281179
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    References listed on IDEAS

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    More about this item

    Keywords

    CCT; Indonesia; Consumption Allocation; Frivolous Good;
    All these keywords.

    JEL classification:

    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality

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