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Assessing household vulnerability to poverty from cross-sectional data: A methodology and estimates from Indonesia

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Author Info

  • Shubham Chaudhuri

    ()
    (Columbia University - Department of Economics)

  • Jyotsna Jalan

    ()
    (Indian Statistical Institute)

  • Asep Suryahadi

    ()
    (SMERU Research Institute)

Abstract

A household's observed poverty status is an ex-post measure of a household's well-being (or lack thereof). But for thinking about forward-looking anti-poverty interventions that aim to prevent rather than alleviate poverty, what really matters is the vulnerability of households to poverty, i.e., the exante risk that a household will, if currently non-poor, fall below the poverty line, or if currently poor, will remain in poverty. Ideally, vulnerability at the household level would be estimated with panel data of sufficient length and richness. However, such data are rare, especially in poor, developing economies. We argue in this paper that despite the limitations of purely cross-sectional data, an analysis of these data can potentially be informative. We lay out a simple and fairly flexible methodology for empirically assessing household vulnerability to poverty using cross-sectional survey data, and demonstrate the uses and limitations of the proposed methods through a case study using data from the December 1998 mini-SUSENAS survey from Indonesia.

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Bibliographic Info

Paper provided by Columbia University, Department of Economics in its series Discussion Papers with number 0102-52.

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Length: 37 pages
Date of creation: 2002
Date of revision:
Handle: RePEc:clu:wpaper:0102-52

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Cited by:
  1. James Foster & Indranil Dutta & Ajit Mishra, 2010. "On Measuring Vulnerability to Poverty," Working Papers 2010-13, The George Washington University, Institute for International Economic Policy.
  2. Katja Landau & Stephan Klasen & Walter Zucchini, 2012. "Measuring Vulnerability to Poverty Using Long-Term Panel Data," Courant Research Centre: Poverty, Equity and Growth - Discussion Papers 118, Courant Research Centre PEG.
  3. Tsehay, Abrham Seyoum & Bauer, Siegfried, 2012. "Poverty Dynamics and Vulnerability: Empirical Evidence from Smallholders in Northern Highlands of Ethiopia," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126873, International Association of Agricultural Economists.
  4. Tsehay, Abrham Seyoum & Bauer, Siegfried, 2012. "Poverty Dynamics and Vulnerability: Empirical Evidence from Smallholders in Northern Highlands of Ethiopia," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 126780, Agricultural and Applied Economics Association.
  5. Ligon, Ethan & Schechter, Laura, 2002. "Measuring Vulnerability: The Director's Cut," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  6. Ligon, Ethan, 2010. "Measuring risk by looking at changes in inequality : vulnerability in Ecuador," CUDARE Working Paper Series 1095, University of California at Berkeley, Department of Agricultural and Resource Economics and Policy.
  7. Echevin, Damien, 2011. "Vulnerability to asset-poverty in Sub-Saharan Africa," MPRA Paper 35660, University Library of Munich, Germany.
  8. Jing Dai & Stefan Sperlich & Walter Zucchini, 2011. "Estimating and Predicting Household Expenditures and Income Distributions," MAGKS Papers on Economics 201147, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
  9. K. Kavi Kumar & Maithili Ramachandran & Brinda Viswanathan, 2009. "What Characterises Women Vulnerable to Chronic Energy Deficiency?," Social Indicators Research, Springer, vol. 90(3), pages 365-380, February.

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