Can Cash Transfers Help Households Escape an Inter-Generational Poverty Trap?

Abstract

Survey data collection for this project was financed by the Inter-American Development Bank. Administrative data was obtained from the Government of Ecuador. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research, the Inter-American Development Bank, its Board of Directors, or the countries they represent. At least one co-author has disclosed a financial relationship of potential relevance for this research. Further information is available online at http://www.nber.org/papers/w22670.ack NBER working papers are circulated for discussion and comment purposes. They have not been peer-reviewed or been subject to the review by the NBER Board of Directors that accompanies official NBER publications.

Education Cash Transfer and High School Enrollment in Indonesia

“…The cash transfer policy aims to help poor and disadvantaged families to break the legacy of inter-generational poverty (Molina-Millan et al, 2016;Araujo, Bossh and Schady, 2017). Limited access to education is one of the problems caused by poverty.…”

“…Many poor households are constrained by liquidity and wrong perceptions of return on investment in children so that they do not invest in their children's human capital, even though the returns on this investment are high (Araujo, Bossh and Schady, 2017). Children from poor households have lower access to education which might be caused by the limited ability of parents to afford education and poor households are more vulnerable to crises, so that children in junior and senior high school tend to drop out of school and work to help their parents (Suryadarma, Suryahadi and Sumarto, 2006;Izzaty, 2009;Rachmawati et al, 2017).…”