American Economic Journal:
Economic Policy
ISSN 1945-7731 (Print) | ISSN 1945-774X (Online)
On-Demand Assistance: Experimental Evidence from Indonesia
American Economic Journal: Economic Policy
(pp. 308–45)
Abstract
Given labor informality in developing countries, addressing employment shocks is challenging. We study Indonesia's new approach for on-demand online applications for temporary cash assistance and online job training. Through 20 lotteries over two years, 11 million beneficiaries were selected. In nationwide representative surveys matched with administrative data, most beneficiaries report not receiving the assistance, with no detectable impact on employment or consumption. In contrast, survey data from applicants with working phones reveal high reported take-up and higher incomes. The results suggest that, while flexible, on-demand assistance has potential, design features that allow for flexibility could hinder receipt and, thus, impact.Citation
Hanna, Rema ⓡ Benjamin A. Olken ⓡ Sudarno Sumarto ⓡ Achmad Maulana ⓡ Vivi Alatas ⓡ Elan Satriawan. 2026. "On-Demand Assistance: Experimental Evidence from Indonesia." American Economic Journal: Economic Policy 18 (4): 308–45. DOI: 10.1257/pol.20250324Additional Materials
JEL Classification
- E21 Macroeconomics: Consumption; Saving; Wealth
- E24 Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
- I38 Welfare, Well-Being, and Poverty: Government Programs; Provision and Effects of Welfare Programs
- J24 Human Capital; Skills; Occupational Choice; Labor Productivity
- J46 Informal Labor Markets
- O15 Economic Development: Human Resources; Human Development; Income Distribution; Migration