Bulletin of Monetary Economics and Banking

The Social Impact of Unconditional Cash Transfer: A Quasi-Experimental Approach

Andar Ristabet Hesda, Ministry of Finance of Republic IndonesiaFollow

Document Type

Article in Press

Abstract

This study investigates the social effects of the unconditional cash transfer program and analyzes the underlying mechanism. The empirical analysis indicates that those who consistently participated as program beneficiaries own greater social capital than those who did not maintain continuous enrollment in the program. One mechanism of this impact is enhanced personality, particularly in social behavior. Furthermore, the characteristic of social capital most impacted is heightened participation in communal activities. This study indicates that the program neither displaces private aid nor promotes altruism. These data contradict the claim that the targeted cash transfer program could incite societal discord by fostering polarization between beneficiaries and non-beneficiaries. Consequently, this outcome may bolster the government’s assurance in augmenting or prolonging the coverage or length of the unconditional cash transfer program during both crises and normal circumstances.

Recommended Citation

Ristabet Hesda, Andar (2025) "The Social Impact of Unconditional Cash Transfer: A Quasi-Experimental Approach," Bulletin of Monetary Economics and Banking: Vol. 28: No. 3, Article 4.
DOI: https://doi.org/10.59091/2460-9196.1969
Available at: https://bulletin.bmeb-bi.org/bmeb/vol28/iss3/4