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Assets and poverty status dynamics in 5 main regions in Indonesia

Author

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  • Purna Fitria

    (Graduate Programme in Economics, Faculty of Economics and Business, Universitas Indonesia, Indonesia)

Abstract

Comparing household expenditure and national poverty line, about 24.78% of households in Indonesia experienced poverty (expenditure below the poverty line) at least once within 14-year period. By utilizing the Ordered Logit Model, this study examines the determinants of household poverty status and analyses the relative effect of different household assets and characteristics on their poverty status. Employing three waves of Indonesia Family Life Survey (IFLS) consisting of household level data from the year of 2000, 2007 and 2014 and categorized households into five main regions based on their location. This study finds that assets (building, vehicle, jewellery, and savings) play important role in determining poverty status of households in Indonesia. Some demographic and socio-economic variables are confirmed to be statistically significant to poverty status in Indonesia. However, the deter- minants of poverty status vary within regions.

Suggested Citation

  • Purna Fitria, 2017. "Assets and poverty status dynamics in 5 main regions in Indonesia," Economic Journal of Emerging Markets, Universitas Islam Indonesia, vol. 9(1), pages 104-113, April.
    • Handle: RePEc:uii:journl:v:9:y:2017:i:1:p:104-113
    DOI: 10.20885/ejem.vol9.iss1.art11
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    assets; logit model; poverty; household;
    All these keywords.

    JEL classification:

    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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