Impact of the Family Hope Program on Cognitive Outcomes in Poor Rural Indonesia
DOI:
https://doi.org/10.15408/sjie.v15i1.50184Keywords:
cognitive outcome, conditional cash transfer, early development instrument, family hope program (PKH), propensity score matchingAbstract
Research Originality: This article assesses the impact of Indonesia’s Family Hope Program (PKH) using a composite cognitive score rather than single test scores and jointly analyzing additional outcomes (Body Mass Index and the Early Development Instrument), which previous conditional cash transfer evaluations have not examined together.
Research Objectives: The study examines whether PKH improves cognitive outcomes among primary school children aged 6–9 years in poor rural areas of Indonesia.
Research Method: The analysis uses 2013 ECED survey data about 11,183 children aged 6–9 years and employs propensity score matching to address selection bias using observational data.
Empirical Results: PKH has no statistically significant effect on any cognitive test score or the composite index, and does not improve Body Mass Index. However, it has small positive effects on Early Development Instrument scores for language and cognitive development, especially basic literacy and numeracy.
Implications: The findings indicate that investments in school quality, early-childhood education, home learning resources, and nutrition should complement PKH.
JEL Classification: I21, I28, I38
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