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The Relationship between Chronic Poverty and Household Dynamics : Evidence from Indonesia

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Author Info

  • Wenefrida Widyanti

    (SMERU)

  • Asep Suryahadi
  • Sudarno Sumarto
  • Athia Yumna

Abstract

The composition of households frequently change due to births, deaths, divorces, marriages, the departure of children from home, and other compositional changes. Consequently, a large number of people undergo some fundamental change in household arrangements during relatively short periods of time. However, using data from Indonesia, this study finds that change in household composition is not a major cause of chronic poverty. Similarly, it finds no evidence that households change their composition to cope with negative shocks. Nevertheless, the study confirms that the larger the number of household members, the higher the probability that a household is chronically poor. Comparing different types of household compositions, households with a single female without children have the lowest probability of being either chronically poor or vulnerable, while single male households with or without children have the highest probability of being vulnerable. Frequent changes in household compositions imply that the use of household as the unit of analysis for poverty may undermine, or at least complicate, the conceptualization and measurement of chronic poverty. This also implies that the problem of targeting social protection programs not only relates to implementation, but also has some conceptual roots.

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Bibliographic Info

Paper provided by East Asian Bureau of Economic Research in its series Microeconomics Working Papers with number 22554.

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Date of creation: Jan 2009
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Handle: RePEc:eab:microe:22554

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Related research

Keywords: household composition; chronic poverty; social protection; Indonesia;

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References

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  1. Meenakshi, J. V. & Ray, Ranjan, 2002. "Impact of household size and family composition on poverty in rural India," Journal of Policy Modeling, Elsevier, Elsevier, vol. 24(6), pages 539-559, October.
  2. Asep Suryahadi & Sudarno Sumarto & Lant Pritchett, 2003. "Evolution of Poverty During the Crisis in Indonesia," Asian Economic Journal, East Asian Economic Association, East Asian Economic Association, vol. 17(3), pages 221-241, 09.
  3. Woolard, Ingrid & Klasen, Stephan, 2004. "Determinants of Income Mobility and Household Poverty Dynamics in South Africa," IZA Discussion Papers, Institute for the Study of Labor (IZA) 1030, Institute for the Study of Labor (IZA).
  4. Pradhan, Menno, et al, 2001. "Eating Like Which "Joneses?" An Iterative Solution to the Choice of a Poverty Line "Reference Group."," Review of Income and Wealth, International Association for Research in Income and Wealth, International Association for Research in Income and Wealth, vol. 47(4), pages 473-87, December.
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Citations

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Cited by:
  1. Takahiro Akita & Ni Made Inna Dariwardani, 2013. "Chronic and Transient Poverty in Indonesia: A Spatial Perspective with the 2008-2010 Susenas Panel Data," Working Papers, Research Institute, International University of Japan EMS_2013_19, Research Institute, International University of Japan.
  2. Daniel Suryadarma & Yus Medina Pakpahan & Asep Suryahadi, 2009. "The Effects of Parental Death and Chronic Poverty on Children’s Education and Health : Evidence from Indonesia," Development Economics Working Papers, East Asian Bureau of Economic Research 22549, East Asian Bureau of Economic Research.
  3. G. M. Arif & Shujaat Farooq, 2012. "Rural Poverty Dynamics in Pakistan: Evidence from Three Waves of the Panel Survey," Poverty and Social Dynamics Paper Series, Pakistan Institute of Development Economics 2012:02, Pakistan Institute of Development Economics.
  4. 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), Department of Economics, Padjadjaran University 201410, Department of Economics, Padjadjaran University, revised Jul 2014.
  5. Bierbaum, Mira & Gassmann, Franziska, 2012. "Chronic and transitory poverty in the Kyrgyz Republic: What can synthetic panels tell us?," MERIT Working Papers, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT) 064, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
  6. Adama BAH, 2013. "Estimating Vulnerability to Poverty using Panel data: Evidence from Indonesia," Working Papers, CERDI 201325, CERDI.
  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), Department of Economics, Padjadjaran University 201310, Department of Economics, Padjadjaran University, revised Jun 2013.
  8. Teguh, Dartanto & Nurkholis, Nurkholis, 2011. "Finding out of the Determinants of Poverty Dynamics in Indonesia: Evidence from Panel Data," MPRA Paper, University Library of Munich, Germany 41185, University Library of Munich, Germany.

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