TY - JOUR
T1 - Poverty Dynamics in Indonesia
T2 - The Prevalence and Causes of Chronic Poverty
AU - Sugiharti, Lilik
AU - Purwono, Rudi
AU - Esquivias, Miguel Angel
AU - Jayanti, Ari Dwi
N1 - Publisher Copyright:
© 2022. All Rights Reserved.
PY - 2022
Y1 - 2022
N2 - This study aims to determine the chronicity of poverty in Indonesia using the equally distributed equivalent (EDE) poverty gap method, tracking Indonesian households in 2007 and 2014. The results indicate that the largest component of poverty among households was chronic (77%). Compared to transient poverty, chronic poverty is more common across individuals. Unlike previous studies, we used data at the district level to measure the poverty line, discovering that the cost of poverty inequality is lower than often reported. This decision is because disaggregated data (poverty line) can show a more realistic poverty threshold. Using a quantile regression approach, we found evidence that age, gender, employment status, and education were significant factors of chronicity. Other significant factors of chronic poverty include large household size, having no access to services (finance, electricity, information, and mobility), and having limited or no assets. Casual employment in the agricultural sector and living in rural areas increase the probability of poverty, although not necessarily chronic. Poverty alleviation programs, therefore, need to target the right causes as exposure to poverty varies across households.
AB - This study aims to determine the chronicity of poverty in Indonesia using the equally distributed equivalent (EDE) poverty gap method, tracking Indonesian households in 2007 and 2014. The results indicate that the largest component of poverty among households was chronic (77%). Compared to transient poverty, chronic poverty is more common across individuals. Unlike previous studies, we used data at the district level to measure the poverty line, discovering that the cost of poverty inequality is lower than often reported. This decision is because disaggregated data (poverty line) can show a more realistic poverty threshold. Using a quantile regression approach, we found evidence that age, gender, employment status, and education were significant factors of chronicity. Other significant factors of chronic poverty include large household size, having no access to services (finance, electricity, information, and mobility), and having limited or no assets. Casual employment in the agricultural sector and living in rural areas increase the probability of poverty, although not necessarily chronic. Poverty alleviation programs, therefore, need to target the right causes as exposure to poverty varies across households.
KW - Chronic poverty
KW - EDE poverty gap
KW - Indonesia
KW - economic inclusion
KW - poverty eradication
KW - poverty line
KW - quantile regression
KW - social welfare
KW - urban poverty
UR - http://www.scopus.com/inward/record.url?scp=85126151609&partnerID=8YFLogxK
U2 - 10.25133/JPSSv302022.025
DO - 10.25133/JPSSv302022.025
M3 - Article
AN - SCOPUS:85126151609
SN - 2465-4418
VL - 30
SP - 423
EP - 447
JO - Journal of Population and Social Studies
JF - Journal of Population and Social Studies
ER -