Mohtar Rasyid, Anita Kristina, Pribanus Wantara, Muhamad Abdul Jumali
This study aims to evaluate the impact of government funding on household members' participation in social activities. The data used in this study comes from the publication of the Indonesia Family Life Survey (IFLS) which contains information on aspects of household life in Indonesia, including social activities The main problem in household economic analysis is too many determinants of social activity at both the household and community levels. As a result, there are many confounding factors at the household and community level. Therefore, to isolate the effect of un-observed heterogeneity at the household level, this study uses a First-Difference approach. Meanwhile, to overcome the possibility of bias at the community level, this study uses a community-level Fixed-Effect approach. The combination of First Difference (FD) and Fixed Effect (FE) to isolate various external determinants in the model is an important innovation in this research. The results of the study show that households that receive government assistance are more involved in social activities. For this reason, appropriate government assistance can be used to increase community participation in development. This research in the future can still be developed by expanding the scope of social activities analyzed. © 2023 WITPress. All rights reserved.
Economics Department, Universitas Trunojoyo Madura, Bangkalan, 69162, Indonesia; Industrial Engineering Department, University PGRI Adi Buana Surabaya, Surabaya, 60282, Indonesia
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