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Do short-term unconditional cash transfers change behaviour and preferences? evidence from Indonesia

Bibliographic Data

ID21695035
AuthorsRidho Al Izzati (0000-0002-4589-9246, SMERU Research Institute, Jakarta Pusat, Indonesia), Daniel Suryadarma (0000-0003-1530-881X, Asian Development Bank Institute, Tokyo, Japan, corresponding author), Asep Suryahadi (0000-0002-6589-3079, SMERU Research Institute, Jakarta Pusat, Jl. Cikini Raya, Indonesia)
Year2023
Volume51
Issue3
Pages291-306
Publication date2023-07-03
Open AccessYes
TypeARTICLE
VenueOxford Development Studies (JOURNAL)
Journal identifiersISSN: 1360-0818 • E-ISSN: 1469-9966
PublisherInforma UK Limited (PUBLISHER • GB)
DOI10.1080/13600818.2023.2204423
OpenAlexW4367318930
LanguageEN
Citations received3
References cited35

Short-term unconditional cash transfers are used as a temporary mitigation strategy during adverse economic shocks. They can however, cause adverse unintended impacts on behaviour and preferences. We estimate the effect of receiving short-term unconditional cash transfers on behaviour, risk aversion, and intertemporal choice in Indonesia. The country first introduced the program in 2005 and continues to use it whenever adverse economic shocks occur. With 15.5 million beneficiary households, the program remains one of the largest in the world. We use an individual-level longitudinal dataset spanning 1997 – 2014. To identify a causal relationship, we combine coarsened exact matching with difference-in-differences. We find no evidence that the short-term unconditional cash transfer affected beneficiaries’ behaviour or preferences. Together with evidence of its positive impact in mitigating the impact of adverse economic shocks, our findings show that short-term unconditional cash transfers should continue to be part of the government’s portfolio of social protection programs

Beneficiary · Cash · Cash transfers · Dynamic inconsistency · Economics · Financial economics · Microeconomics · Portfolio · Public economics · Agricultural risk and resilience · Gender, Labor, and Family Dynamics · Poverty, Education, and Child Welfare · Finance

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Citations per year1.5
Citation span2024 - 2026 (3)
Highly citedNo

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