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Beyond the Headcount: Examining the Dynamics and Patterns of Multidimensional Poverty in Indonesia

Author

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  • Sumarto, Sudarno
  • de Silva, Indunil

Abstract

The aim of this study was twofold. First, despite the vast amount of empirical studies on income poverty in Indonesia, very few studies have examined multidimensional household welfare deprivations. We attempted to fill this gap by utilizing for the first time the annually conducted National Socioeconomic Survey by Statistics Indonesia (BPS), and the Alkire and Foster (2007; 2011) methodology to investigate the degree and dynamics of multidimensional household welfare deprivations in Indonesia for the 2004 and 2013 time periods. Second, we explore whether there are differing patterns of change for consumption poverty and multidimensional poverty at both the household and regional level. We investigate the magnitude of overlap between consumption and multidimensional poverty, and explore whether the multidimensionally deprived households are necessarily income poor or not and vice versa. In particular we scrutinize whether the question of who is poor has many different answers. This paper is innovative in that it changes the focus from the conventional unidimensional perspective of poverty, centered on income or expenditure to a much broader multidimensional approach. Our results revealed the overlap between consumption poverty and multidimensional poverty to be extremely weak. Our findings broaden the targeting space for poverty reduction, suggesting that poverty reduction programs should provide different kinds of assistance to the poor in different dimensions of poverty. Results clearly demonstrate the question of who is poor to have many different answers. So overall, the findings from the study underscore the need to use both monetary and multidimensional poverty indices as complements to understand the extent, diversity and dynamics of household welfare in Indonesia. Thus placing policy analytics on fundamentally important capability deprivations, rather than only on a convenient proxy such as income or consumption, will not only help to better comprehend poverty and deprivation – but also to combat them.

Suggested Citation

  • Sumarto, Sudarno & de Silva, Indunil, 2014. "Beyond the Headcount: Examining the Dynamics and Patterns of Multidimensional Poverty in Indonesia," MPRA Paper 60379, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:60379
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    References listed on IDEAS

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    1. World Bank, 2006. "Making the New Indonesia Work for the Poor," World Bank Publications - Reports 8172, The World Bank Group.
    2. Farina, Francesco & Hahn, Frank & Vannucci, Stefano (ed.), 1996. "Ethics, Rationality, and Economic Behaviour," OUP Catalogue, Oxford University Press, number 9780198289814.
    3. Alkire, Sabina & Seth, Suman, 2015. "Multidimensional Poverty Reduction in India between 1999 and 2006: Where and How?," World Development, Elsevier, vol. 72(C), pages 93-108.
    4. Sen, Amartya K, 1976. "Poverty: An Ordinal Approach to Measurement," Econometrica, Econometric Society, vol. 44(2), pages 219-231, March.
    5. François Bourguignon & Satya R. Chakravarty, 2019. "The Measurement of Multidimensional Poverty," Themes in Economics, in: Satya R. Chakravarty (ed.), Poverty, Social Exclusion and Stochastic Dominance, pages 83-107, Springer.
    6. Asep Suryahadi & Gracia Hadiwidjaja & Sudarno Sumarto, 2012. "Economic growth and poverty reduction in Indonesia before and after the asian financial crisis," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 48(2), pages 209-227, August.
    7. Taryn Dinkelman, 2004. "How Household Context Affects Search Outcomes Of The Unemployed In Kwazulu‐Natal, South Africa," South African Journal of Economics, Economic Society of South Africa, vol. 72(3), pages 484-521, September.
    8. Brück, Tilman & Workneh Kebede, Sindu, 2013. "Dynamics and Drivers of Consumption and Multidimensional Poverty: Evidence from Rural Ethiopia," IZA Discussion Papers 7364, Institute of Labor Economics (IZA).
    9. Caterina Ruggeri Laderchi & Ruhi Saith & Frances Stewart, 2003. "Does it Matter that we do not Agree on the Definition of Poverty? A Comparison of Four Approaches," Oxford Development Studies, Taylor & Francis Journals, vol. 31(3), pages 243-274.
    10. Watts, H.W., 1969. "An Economic Definition Of Poverty," Archive 259600, North Carolina State University, Department of Agricultural and Resource Economics.
    11. A. Atkinson, 2003. "Multidimensional Deprivation: Contrasting Social Welfare and Counting Approaches," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 1(1), pages 51-65, April.
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    Cited by:

    1. Zaira Najam & John Gibson, 2022. "Does intra‐country poverty convergence depend on spatial spillovers and the type of poverty measure? Evidence from Pakistan," Asia and the Pacific Policy Studies, Wiley Blackwell, vol. 9(3), pages 516-535, September.
    2. Sudarno SUMARTO & Sarah MOSELLE, 2015. "Addressing Poverty and Vulnerability in ASEAN: An Analysis of Measures and Implications Going Forward," Working Papers DP-2015-63, Economic Research Institute for ASEAN and East Asia (ERIA).
    3. Arief Anshory Yusuf & Andy Sumner, 2017. "Multidimensional poverty in Indonesia: How inclusive has economic growth been?," Departmental Working Papers 2017-09, The Australian National University, Arndt-Corden Department of Economics.
    4. Hoolda Kim, 2019. "Beyond Monetary Poverty Analysis: The Dynamics of Multidimensional Child Poverty in Developing Countries," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 141(3), pages 1107-1136, February.
    5. Van Q. Tran & Sabina Alkire & Stephan Klasen, 2015. "Static and Dynamic Disparities between Monetary and Multidimensional Poverty Measurement: Evidence from Vietnam," Research on Economic Inequality, in: Thesia I. Garner & Kathleen S. Short (ed.), Measurement of Poverty, Deprivation, and Economic Mobility, volume 23, pages 249-281, Emerald Publishing Ltd.
    6. Agus Surachman & Hartoyo, 2015. "Parental Investment and Poverty Dynamics in West Java, Indonesia," Journal of Family and Economic Issues, Springer, vol. 36(3), pages 340-352, September.
    7. Khaufelo Raymond Lekobane, 2022. "Does it matter which poverty measure we use to identify those left behind? Investigating poverty mismatch and overlap for Botswana," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 24(1), pages 171-196, June.

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    More about this item

    Keywords

    Multidimensional poverty measurement; multiple deprivations; human development; capability approach; counting approach.;
    All these keywords.

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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