COVID-19 Social Assistance Program and Poverty: Evidence from Indonesia

Sri Juli Asdiyanti Samuda; Erna Suprihartiningsih

doi:10.29259/jep.v20i2.19088

COVID-19 Social Assistance Program and Poverty: Evidence from Indonesia

Sri Juli Asdiyanti Samuda, Erna Suprihartiningsih

Abstract

The COVID-19 pandemic and policy response caused widespread disruptions to Indonesia's economy. Besides prioritizing saving people's lives during the COVID-19 pandemic, the government's focus is also to minimize the negative economic impact of the pandemic, including allocating social assistance programs to support household well-being. This study examines the role of COVID-19 social assistance programs in protecting households from falling into poverty during the COVID-19 pandemic. Using a longitudinal dataset from SUSENAS March and September 2020, this study employs difference-in-difference estimation with a conditional logit model to estimate the impact of COVID-19 social assistance programs on household poverty status. The result shows that the COVID-19 social assistance programs positively prevent households from becoming poor during the COVID-19 pandemic.

Keywords

COVID-19, poverty, government assistance, panel data

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DOI: https://doi.org/10.29259/jep.v20i2.19088

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Jurnal Ekonomi Pembangunan
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