The Effect of Educational Cash Transfer for Students From Low-Income Families on Students’ Dropout Rate in Indonesia

Abstract

The Indonesian government provides an educational cash transfer program for low-income families with children aged 6-21 so that the children can complete their education up to secondary level (Program Indonesia Pintar – PIP program). The Covid-19 pandemic from 2020 to 2022 might hamper the success of this program. Hence, this study aims to see how the PIP program affects the dropout rate of students from low-income families at the primary, junior, and senior secondary levels before and during the Covid-19 pandemic. This study uses cross-sectional data from the National Socioeconomic Survey (SUSENAS) of 2019 and 2021 and applies the propensity score matching (PSM) method. The results show that before the pandemic in 2019, the PIP program decreased the probability of dropping out for students from low-income families at primary and junior secondary schools but not for students at senior secondary schools. However, during the pandemic in 2021, the PIP program decreased the probability of dropping out for students in junior secondary and senior secondary schools but not for students in primary schools. The PIP program only significantly reduces the probability of dropping out for junior secondary students, both before and during the Covid-19 pandemic.



Author Information
Nisma Anggara Samalo, Universitas Indonesia, Indonesia
Thia Jasmina, Universitas Indonesia, Indonesia

Paper Information
Conference: ACEID2024
Stream: Education

This paper is part of the ACEID2024 Conference Proceedings (View)
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To cite this article:
Samalo N., & Jasmina T. (2024) The Effect of Educational Cash Transfer for Students From Low-Income Families on Students’ Dropout Rate in Indonesia ISSN: 2189-101X – The Asian Conference on Education & International Development 2024 Official Conference Proceedings https://doi.org/10.22492/issn.2189-101X.2024.65
To link to this article: https://doi.org/10.22492/issn.2189-101X.2024.65


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Posted by James Alexander Gordon