The Impact of Zakat Programs from Human Development Perspectives: An Empirical Evaluation

Abstract

This chapter analyzes the impact of Zakat on to the welfare of household of Zakat recipient (mustahiq). Tis study utilized human development index (HDI) as the indicator of welfare, which has been disaggregated at household level. Te study performed two times repeated questionnaires to get the sample, and distributed to benefciaries of productive-based Zakat who have received funding from Zakat institutions through two-stage cluster sampling. Te study suggests that the level of human development index of household who receives productive-based Zakat is signifcantly higher than the frst period. Moreover, through panel data regression, the results show that the variable of productive-based Zakat is positively correlated with the level of HDI. Terefore, it can be concluded that Zakat, particularly productive-based Zakat, can play important role to improve the welfare of poor household.