The Effects of Cash and In-Kind Transfer by Religious Organizations on Muslim Households’ Expenditure: Indonesian Family Life Survey 2014

Abstract

Cash and in-kind transfers are one of the instruments utilized in an endeavor to further expand the economy and solve household welfare concerns.  Aside from the government social security programmed, religious organizations provide a few informal cash and in-kind transfers to largely disadvantaged households. The primary goal of this research is to investigate the effect of cash and in-kind transfers from religious organizations on the consumption expenditures of Muslim households. The Indonesian Family Life Survey (IFLS) 2014 data is used. Using the Ordinary Least Squares method, this study discovers that Muslim households spend the cash and in-kind transfers from religious organizations on two types of household expenditure, namely personal expenditure and utility expenditure.