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Short-term poverty dynamics in rural Indonesia during the economic crisis

Author

Listed:
  • Asep Suryahadi

    (The SMERU Research Institute, Jakarta, Indonesia)

  • Wenefrida Widyanti

    (The SMERU Research Institute, Jakarta, Indonesia)

  • Sudarno Sumarto

    (The SMERU Research Institute, Jakarta, Indonesia)

Abstract

During the economic crisis, the poverty rate in Indonesia changed relatively quickly in short periods of time, implying that there were a large number of households which moved in and out of poverty relatively frequently and experienced relatively short periods of poverty. Using panel data of over 10,000 rural households which were visited four times in 14 months, this study finds that changes that took place at the household level were even greater than what were indicated by the aggregate figures. The total number of households which experienced a change in their poverty status have always been found to be substantial and much greater than the change in poverty rate. Hence, looking only at the changes in the total poverty rate could give a misleading impression on the actual poverty dynamics of households. The analysis also indicates that in order to be invulnerable to poverty, households need to have a mean real per capita consumption over time which is substantially higher than the poverty line. Copyright © 2003 John Wiley & Sons, Ltd.

Suggested Citation

  • 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.
    • Handle: RePEc:wly:jintdv:v:15:y:2003:i:2:p:133-144
    DOI: 10.1002/jid.949
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    References listed on IDEAS

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    1. Asep Suryahadi & Sudarno Sumarto & Agus Priyambada, "undated". "What Happened to Child Labor in Indonesia during the Economic Crisis: The Trade-off between School and Work," Working Papers 360, Publications Department.
    2. Daniel Suryadarma & Rima Prama Artha & Asep Suryahadi & Sudarno Sumarto, "undated". "A Reassessment of Inequality and Its Role in Poverty Reduction in Indonesia," Working Papers 364, Publications Department.
    3. Tohari, Achmad & Parsons, Christopher & Rammohan, Anu, 2017. "Targeting Poverty under Complementarities: Evidence from Indonesia's Unified Targeting System," IZA Discussion Papers 10968, Institute of Labor Economics (IZA).
    4. Kimhi, Ayal, 2004. "Growth, Inequality and Labor Markets in LDCs: A Survey," Discussion Papers 289990, Hebrew University of Jerusalem, Department of Agricultural Economics and Management.
    5. Tohari, Achmad & Parsons, Christopher & Rammohan, Anu, 2019. "Targeting poverty under complementarities: Evidence from Indonesia's unified targeting system," Journal of Development Economics, Elsevier, vol. 140(C), pages 127-144.
    6. Stefan Dercon & Joseph S. Shapiro, 2007. "Moving On, Staying Behind, Getting Lost: Lessons on poverty mobility from longitudinal data," Economics Series Working Papers GPRG-WPS-075, University of Oxford, Department of Economics.
    7. Rongen,Gerton & Binti Ali Ahmad,Zainab & Lanjouw,Peter F. & Simler,Kenneth, 2022. "The Interplay of Regional and Ethnic Inequalities in Malaysian Poverty Dynamics," Policy Research Working Paper Series 9898, The World Bank.

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