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Changes in Household Welfare, Poverty and Inequality During the Crisis

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  • Emmanuel Skoufias
  • Asep Suryahadi

Abstract

This study provides evidence about changes in the distribution of living standards among Indonesian households during the economic crisis. It uses consumption expenditure data from a panel of households that were surveyed in May 1997, just before the onset of the crisis, and then again in August 1998, about a year after the crisis began. A household-specific deflator is used to make nominal consumption expenditures comparable across this period. The results suggest that there was a considerable drop in household welfare during the economic crisis. Average per capita expenditures fell significantly, and at the same time inequality increased. The poverty rate also appears to have doubled from the pre-crisis level. However, transitions into and out of poverty before and after the crisis reveal remarkable fluidity.

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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Bulletin of Indonesian Economic Studies.

Volume (Year): 36 (2000)
Issue (Month): 2 ()
Pages: 97-114

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Handle: RePEc:taf:bindes:v:36:y:2000:i:2:p:97-114

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  1. Angus Deaton & Salman Zaidi, 1999. "Guidelines for Constructing Consumption Aggregates For Welfare Analysis," Working Papers 217, Princeton University, Woodrow Wilson School of Public and International Affairs, Research Program in Development Studies..
  2. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-66, May.
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Cited by:
  1. Chris SAKELLARIOU, 2009. "Changing Wage Distributions and the Evolution of Wage Inequality in Indonesia:1994 – 2007," Economic Growth centre Working Paper Series 0906, Nanyang Technolgical University, School of Humanities and Social Sciences, Economic Growth centre.
  2. Asep Suryahadi & Wenefrida Widyanti & Sudarno Sumarto, 2003. "Short-term poverty dynamics in rural Indonesia during the economic crisis," Journal of International Development, John Wiley & Sons, Ltd., vol. 15(2), pages 133-144.
  3. Wodon, Quentin & Zaman, Hassan, 2008. "Rising food prices in Sub-Saharan Africa : poverty impact and policy responses," Policy Research Working Paper Series 4738, The World Bank.
  4. Espen Villanger & Anette Walstad Enes, 2004. "The role of participation and empowerment in income and poverty dynamics in Indonesia 1993-2000," CMI Working Papers WP 2004: 13, CMI (Chr. Michelsen Institute), Bergen, Norway.
  5. Menno Pradhan & Fadia Saadah & Robert Sparrow, 2003. "Did the Healthcard Program ensure Access to Medical Care for the Poor during Indonesia's Economic Crisis?," Tinbergen Institute Discussion Papers 03-016/2, Tinbergen Institute.
  6. Jomo K.S., 2006. "Growth with Equity in East Asia?," Working Papers 33, United Nations, Department of Economics and Social Affairs.
  7. Andy Sumner & Peter Edward, 2013. "From Low Income, High Poverty to High-Income, No Poverty? An Optimistic View of the Long-Run Evolution of Poverty in Indonesia By International Poverty Lines, 1984–2030," Working Papers in Economics and Development Studies (WoPEDS) 201310, Department of Economics, Padjadjaran University, revised Jun 2013.
  8. Andy Sumner & Arief Anshory Yusuf & Yangki Imade Suara, 2014. "The Prospects of the Poor: A Set of Poverty Measures Based on the Probability of Remaining Poor (or Not) in Indonesia," Working Papers in Economics and Development Studies (WoPEDS) 201410, Department of Economics, Padjadjaran University, revised Jul 2014.
  9. Ravallion, Martin & Lokshin, Michael, 2005. "Lasting local impacts of an economywide crisis," Policy Research Working Paper Series 3503, The World Bank.
  10. Menno Pradhan & Fadia Saadah & Robert Sparrow, 2003. "Did the Healthcard Program ensure Access to Medical Care for the Poor during Indonesia's Economic Crisis?," Tinbergen Institute Discussion Papers 03-016/2, Tinbergen Institute.
  11. Pradhan, Menno & Suryahadi, Asep & Sumarto, Sudarno & Pritchett, Lant, 2000. "Measurements of poverty in Indonesia - 1996, 1999, and beyond," Policy Research Working Paper Series 2438, The World Bank.
  12. Daniel Suryadarma & Rima Prama Artha & Asep Suryahadi & Sudarno Sumarto, 2005. "A Reassessment of Inequality and Its Role in Poverty Reduction in Indonesia," Development Economics Working Papers 22543, East Asian Bureau of Economic Research.

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