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All Journal JURNAL EKONOMI DAN KEBIJAKAN PEMBANGUNAN JURNAL DINAMIKA EKONOMI PEMBANGUNAN Diponegoro Journal of Economics Kinerja JEJAK Ekonomi-Qu (Jurnal Penelitian Ilmu Ekonomi) Jurnal Ekonomi dan Bisnis Ekuilibrium : Jurnal Ilmiah Bidang Ilmu Ekonomi Jurnal Sosial Ekonomi Kelautan dan Perikanan Jurnal REP (Riset Ekonomi Pembangunan) International Journal of Economics, Business and Accounting Research (IJEBAR) Efficient: Indonesian Journal of Development Economics Indicators : Journal of Economic and Business Jurnal Ekonomi dan Pembangunan Indonesia Beujroh : Jurnal Pemberdayaan dan Pengabdian pada Masyarakat Economic Development Analysis Journal
Evi Yulia Purwanti
Faculty Of Economics And Business, Diponegoro University
Agriculture, Biological Sciences & Forestry Arts Humanities Computer Science & IT Economics, Econometrics & Finance Education Environmental Science Social Sciences Other

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Do Public Transfers Crowd Out Private Transfers to the Elderly? Evidence from Indonesia Evi Yulia Purwanti; FX Sugiyanto; Akhmad Syakir Kurnia
EKUILIBRIUM : JURNAL ILMIAH BIDANG ILMU EKONOMI Vol 21 No 1 (2026): March
Publisher : Universitas Muhammadiyah Ponorogo

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.24269/ekuilibrium.v21i1.2026.pp182-198

Abstract

This research explores the potential for government transfer programs to replace or ‘crowd out’ private assistance, with a particular focus on the significant rise in public transfers in Indonesia. Previous studies have not thoroughly examined the relationship between public transfers and the existing network of private transfers. This study adds to the empirical literature on intergenerational transfers by investigating the crowding-out effects between public and private transfers in Indonesia. This research draws on data from wave 5 of the Indonesian Family Life Survey (IFLS-5), with 2,240 selected samples of adult children and elderly parent pairs (dyads). Probit models and ordinary least squares were used to estimate and examine the robustness of the connection between private and public transfers. This study reveals that pension benefits reduce adult children’s propensity to transfer income to elderly parents. This finding reinforces the crowding-out effect hypothesis. Meanwhile, social assistance benefits lead to an increased likelihood of adult children transferring finances to elderly parents, creating a crowding-in effect on private transfers due to public transfers in the form of social assistance. The findings indicate that the needs and capabilities of both parents and children are crucial factors influencing the flow of intergenerational transfers.
Co-Authors Akhmad Syakir Kurnia Ari Nugroho Arief Budiarto Arif Pujiyono Awaliyah, Khikmah Rizqi Cindy Purnama Hardika Citaningati, Putri Rizka Damayanti, Dhia Alifia Dhea Safira, Rizky Karunia Fadil Mufid Kurnia FX Sugiyanto Hastarini Dwi Atmanti Indah Susilowati Kesi Wijajanti Leo Hendra Permana Maula, Ismatu Mohamad Egi Destiartono Muhammad Luthfi Mulyo Hendarto Robertus Naylah, Maal Ningsih Carolina Sitinjak Nugroho, Dirga Ardian Palokoto, Tarina Rahma, Neily Rahmawati, Nur Alifah Riska Arlina Rizky Karunia Dhea Safira Sabila, Fadlilaili Whahda Selawati, Bekti Ayu Setyoningrum, Dewi Syahna Salsabila Trianto, Muhammad Fajri Setia Vidiya Hera Puspitasari Wahyu Widodo Waridin Waridin Wijajanti, Kesi Y. Bagio Mudakir Yamin, Fawzyyah