Should aid reward performance? : evidence from a field experiment on health and education in Indonesia


Country: Indonesia ; 
Disclosure Date: 2014/12/05
Doc Name: Should aid reward performance? : evidence from a field experiment on health and education in Indonesia
Keywords: acute respiratory infections, adult health, adverse effects, antenatal care, ARI, BCG, breastfeeding, Center for Population, child health, child health care, child health services, child labor, childbirth, civil conflict, clinics, community health, community participation, deaths, developing countries, diarrhea, disease, dropout, early childhood, early childhood mortality, Economics, externalities, family composition, family planning, fertility, fertility rate, fewer children, good governance, health behavior, health care, Health centers, health clinics, health conditions, health effects, health expenditures, health indicators, health outcomes, health posts, health providers, health service, health service providers, health services, health workers, Home Affairs, household surveys, household work, human development, illness, immunization, immunizations, impact on health, income, income distribution, infant, infant mortality, Iron, kids, labor supply, live births, local governments, malnourished children, malnutrition, maternal and child health, maternal health, maternal nutrition, midwife, midwives, migration, Millennium Challenge, Millennium Development Goals, miscarriage, miscarriages, mortality, mother, national government, negative effects, neonatal mortality, newborns, News Service, number of children, number of households, nutrition, outreach activities, patient, patients, pill, population data, postnatal care, pregnancies, pregnancy, pregnant woman, pregnant women, prenatal care, prevalence, primary care, primary education, primary school, progress, Public Policy, public services, quality of health, recipient countries, respect, rural areas, school attendance, school buildings, school year, secondary school, secondary schools, service delivery, service providers, service provision, Social Welfare, spillover, stillbirth, technical assistance, transportation, treatment, uniforms, use of family planning, vaccine, workers, young children
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Language: English
Region: East Asia and Pacific ; 
Rep Title: Should aid reward performance? : evidence from a field experiment on health and education in Indonesia
Topics: Social Protections and Labor ; Health, Nutrition and Population
SubTopics: Health Monitoring & Evaluation ; Health Systems Development & Reform ; Disease Control & Prevention ; Population Policies ; Labor Policies
Unit Owning: Social Protect & Labor – GP (GSPDR)
Collection Title: Author accepted manuscript
Source Citation: American Economic Journal : Applied Economics. — Vol. 6, no. 4 (October 2014), pp. 1-34


The authors report an experiment in 3,000 villages that tested whether incentives improve aid efficacy. Villages received block grants for maternal and child health and education that incorporated relative performance incentives. Sub-districts were randomized into incentives, an otherwise identical program without incentives, or control. Incentives initially improved preventative health indicators, particularly in underdeveloped areas, and spending efficiency increased. While school enrollments improved overall, incentives had no differential impact on education, and incentive health effects diminished over time. Reductions in neonatal mortality in non-incentivized areas did not persist with incentives. The authors find no systematic scoring manipulation or funding reallocation toward richer areas.