Do secondary school children stay in school and out of the labour market in the presence of an educational cash transfer?

We investigate the effect of an educational cash transfer on schooling and working of the recipients and their non-recipient siblings in Indonesia, using a matched difference-in-differences strategy. We find that the cash transfer increases the probability of schooling for all recipients. Specifically, the likelihood of schooling for the senior secondary school children increases by 19 percentage points. However, there is no effect on the recipient's probability to work. Furthermore, there is no significant spill-over effect on non-recipient siblings' schooling. While the transfer reduces the incidence of child labour for non-recipient girls, it increases the probability of non-recipient boys to work.