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

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 crisi

Child work and schooling under trade liberalization in Indonesia

We examine the effects of trade liberalization on child work and schooling in Indonesia. Our estimation strategy identifies geographical differences in the effects of trade policy through district and province level exposure to reduction in import tariff barriers. We use seven rounds (1993 to 2002) of the Indonesian annual national household survey (Susenas), and relate workforce participation and school enrolment of children aged 10-15 to geographic variation in relative tariff exposure. Our main findings show that increased exposure to trade liberalization is associated with a decrease in child work and an increase in enrolment among 10 to 15 year olds. The effects of tariff reductions are strongest for children from low skill backgrounds and in rural areas. However, a dynamic analysis suggests that these effects reflect the long term benefits of trade liberalization, through economic growth and subsequent income effects, while frictions and negative adjustment effects may occur in the short term.child labor, trade

Child Labor and Trade Liberalization in Indonesia

We examine the effects of trade liberalization on child work in Indonesia. Our estimation strategy identifies geographical differences in the effects of trade policy through district level exposure to reduction in import tariff barriers. We use a balanced panel of 261 districts, based on four rounds (1993 to 2002) of the Indonesian annual national household survey (Susenas), and relate workforce participation of children aged 10-15 to geographic variation in relative tariff exposure. Our main findings show that increased exposure to trade liberalization is associated with a decrease in child work among the 10 to 15 year olds. The effects of tariff reductions are strongest for children from low skill backgrounds and in rural areas. Favorable income effects for the poor, induced by trade liberalization, are likely to be the dominating effects underlying these results.poverty, trade liberalization, child labor, Indonesia

Talking Sense about Political Correctness

In this paper I make a number of points about “political correctness”. Although individually these arguments seem straightforward - and will hopefully be uncontroversial - put together in context they reveal the idea of a “politically correct”, left-wing dominated, media or intelligentsia in Western political culture to be a conservative bogeyman. The rhetoric of “political correctness” is in fact overwhelmingly a right-wing conservative one which itself is used mainly to silence dissenting political viewpoints. However, the same investigation also suggests that a “politics of speech” is an inevitable fact of social life and that some sorts of censorship are likewise inevitable. The question of censorship is therefore revealed as not “Whether we should tolerate all sorts of speech?” but “Which sorts of speech should we tolerate?”

Health Spending and Decentralization in Indonesia

Using a panel dataset of 320 Indonesian districts we examine the impact of district budgets on public health spending, utilization patters in the public and private sector, and private health spending in the four years after decentralization. We exploit the panel structure of the data and the fact that district budgets are largely driven by central government transfers to determine causal patterns. We find that the elasticity of public health spending with respect to district budgets is around 0.9 with a higher elasticity for development spending than for routine spending. District splits reduce public health spending. We find a positive effect of public district health spending on public sector utilization, with the strongest effects in the poorest two quintiles. We find no significant effects on private sector utilization and out of pocket health expenditures. --public spending,health,decentralization

Unemployment Assistance and Transition to Employment in Argentina

In 2001-02, Argentina experienced a wrenching economic crisis. Plan Jefes, implemented in May 2002, was Argentina’s institutional response to the increase in unemployment and poverty triggered by the crisis. The program provided a social safety net and appears to have successfully protected some families against indigence. Despite this success, the continued existence of the program, which provides benefits to eligible unemployed individuals for an unlimited duration, may have unappealing long-term consequences. Reliance on the plan may reduce the incentive to search for work and in the long-run may damage individual employability and perpetuate poverty. Motivated by these concerns, this paper examines the effect of participating in Plan Jefes on the probability of exiting from unemployment. Regardless of the data set, the specification and the empirical approach, the evidence assembled in this paper shows that for the period under analysis individuals enrolled in the Plan are between 12 to 19 percentage points less likely to transit to employment as compared to individuals who applied but did not join the Plan. The negative effect of the program tends to be larger for females and as a consequence, over time, the program becomes increasingly feminized. Prima facie, the estimates suggest that programs such as Plan Jefes need to re-consider the balance between providing a social safety net and dulling job-search incentives.unemployment assistance programs, unemployment transitions, Argentina

Remittances, Liquidity Constraints and Human Capital Investments in Ecuador

Over the last decade Ecuador has experienced a strong increase in financial transfers from migrated workers, amounting to 6.4 percent of GDP and 31.5 percent of total exports of goods and services in 2005. This paper investigates how remittances via trans-national networks affect human capital investments through relaxing resource constraints and facilitate households in consumption smoothing by reducing vulnerability to economic shocks. In particular, we explore the effects of remittances on school enrolment and child work in Ecuador. Identification relies on instrumental variables, exploiting information on source countries of remittances and regional variation in the availability of bank offices that function as formal channels for sending remittances. Our results show that remittances increase school enrolment and decrease incidence of child work, especially for girls and in rural areas. Furthermore, we find that aggregate shocks are associated with increased work activities, while remittances are used to finance education when households are faced with these shocks. This suggests that liquidity constraints and vulnerability to covariate risk are especially relevant in rural areas, as it affects household’s investments in human capital of school age children. In this context both child labour supply and transnational remittances serve as coping mechanisms.migration, remittances, trans-national networks, education, child labour, Ecuador

Unemployment Assistance and Transition to Employment in Argentina

In 2001-02, Argentina experienced a wrenching economic crisis. Plan Jefes, implemented in May 2002, was Argentinas institutional response to the increase in unemployment and poverty triggered by the crisis. The program provided a social safety net and appears to have successfully protected some families against indigence. Despite this success, the continued existence of the program, which provides benefits to eligible unemployed individuals for an unlimited duration, may have unappealing long-term consequences. Reliance on the plan may reduce the incentive to search for work and in the long-run may damage individual employability and perpetuate poverty. Motivated by these concerns,this paper examines the effect of participating in Plan Jefes on the probability of exiting from unemployment. Regardless of the data set, the specification and the empirical approach, the paper shows that individuals enrolled in the Plan are between 12 to 19 percentage points less likely to transit to employment as compared to individuals who applied but did not join the Plan. The negative effect of the program tends to be larger for females and as a consequence, over time, the program becomes increasingly feminized. Prima facie, the estimates suggest that programs such as Plan Jefes need to re-consider the balance between providing a social safety net and dulling job-search incentives. --Unemployment assistance programs,unemployment transitions,Argentina

When Robots Rule the Waves?

By virtue of the distinctive character of war at sea, a number of unique and complex ethical questions are likely to arise regarding the applications of autonomous unmanned underwater vehicles and unmanned surface vehicles

Poverty, education, and health in Indonesia : who benefits from public spending?

The authors investigate the extent to which Indonesia's poor benefit from public and private provisioning of education and health services. Drawing on multiple rounds of SUSENAS household surveys, they document a reversal in the rate of decline in poverty and a slowdown in social sector improvements resulting from the economic crisis in the second half of the 1990s. Carrying out traditional static benefit-incidence analysis of public spending in education and health, the authors find patterns consistent with experience in other countries: spending on primary education and primary health care tends to be pro-poor, while spending on higher education and hospitals is less obviously beneficial to the poor. These conclusions are tempered once one allows for economies of scale in consumption which weaken the link between poverty status and household size. The authors also examine the incidence of changes in government spending. They find that the marginal incidence of spending in both junior and senior secondary schooling is more progressive than what static analysis would suggest, consistent with"early capture"by the non-poor of education spending. In the health sector marginal and average incidence analysis point to the same conclusion: the greatest benefit to the poor would come from an increase in primary health care spending.Public Health Promotion,Health Monitoring&Evaluation,Health Economics&Finance,Health Systems Development&Reform,Early Child and Children's Health,Health Systems Development&Reform,Health Monitoring&Evaluation,Poverty Assessment,Health Economics&Finance,Achieving Shared Growth