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Destined for Destitution : Intergenerational Poverty Persistence in Indonesia

Author

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  • Yus Medina Pakpahan

    (SMERU Research Institute)

  • Daniel Suryadarma
  • Asep Suryahadi

Abstract

We estimate intergenerational poverty persistence in Indonesia using a panel dataset. To the best of our knowledge, this is the first such study looking at the issue in the Indonesian context. Different from the majority of studies on this issue, we include controls for several household and individual characteristics, including for living arrangements. Moreover, to circumvent data issues that plague earnings data in developing countries, we use chronic poverty status as a long-term parental welfare measure. We find there is a substantial intergenerational mobility away from poverty among children from poor households. However, the risk of continuing to live in poverty as adults is 35 percentage points higher for children from chronically poor households than for children from households which are not chronically poor.

Suggested Citation

  • Yus Medina Pakpahan & Daniel Suryadarma & Asep Suryahadi, 2009. "Destined for Destitution : Intergenerational Poverty Persistence in Indonesia," Development Economics Working Papers 23041, East Asian Bureau of Economic Research.
    • Handle: RePEc:eab:develo:23041
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    1. Patti Petesch & Deepa Narayan, 2007. "Moving Out of Poverty : Volume 1. Cross-Disciplinary Perspectives on Mobility," World Bank Publications - Books, The World Bank Group, number 11840, April.
    2. Gary Solon & Mary Corcoran & Roger Gordon & Deborah Laren, 1988. "Sibling and Intergenerational Correlations in Welfare Program Participation," Journal of Human Resources, University of Wisconsin Press, vol. 23(3), pages 388-396.
    3. Behrman, Jere R. & Gaviria, Alejandro & Székely, Miguel, 2001. "Intergenerational Mobility in Latin America," IDB Publications (Working Papers) 1351, Inter-American Development Bank.
    4. Miles Corak, 2006. "Do Poor Children Become Poor Adults? Lessons from a Cross-Country Comparison of Generational Earnings Mobility," Research on Economic Inequality, in: Dynamics of Inequality and Poverty, pages 143-188, Emerald Group Publishing Limited.
    5. Duncan, Greg J & Gustafsson, Bjorn & Hauser, Richard & Schmauss, Gunther & Messinger, Hans & Muffels, Ruud & Nolan, Brian, 1993. "Poverty Dynamics in Eight Countries," Journal of Population Economics, Springer;European Society for Population Economics, vol. 6(3), pages 215-234.
    6. Gary Solon, 2002. "Cross-Country Differences in Intergenerational Earnings Mobility," Journal of Economic Perspectives, American Economic Association, vol. 16(3), pages 59-66, Summer.
    7. Harper, Caroline & Marcus, Rachel & Moore, Karen, 2003. "Enduring Poverty and the Conditions of Childhood: Lifecourse and Intergenerational Poverty Transmissions," World Development, Elsevier, vol. 31(3), pages 535-554, March.
    8. Asep Suryahadi & Sudarno Sumarto, 2003. "Poverty and Vulnerability in Indonesia Before and After the Economic Crisis," Asian Economic Journal, East Asian Economic Association, vol. 17(1), pages 45-64, March.
    9. Jere R. Behrman & Alejandro Gaviria & Miguel Sz�kely, 2001. "Intergenerational Mobility in Latin America," Economía Journal, The Latin American and Caribbean Economic Association - LACEA, vol. 0(Fall 2001), pages 1-44.
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    Cited by:

    1. Andrew Dickerson & Gurleen K. Popli, 2016. "Persistent poverty and children's cognitive development: evidence from the UK Millennium Cohort Study," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 179(2), pages 535-558, February.
    2. Fatimah, Alfariany Milati & Kofol, Chiara, 2023. "Migrating for children’s better future: Intergenerational mobility of internal migrants’ children in Indonesia," Journal of Asian Economics, Elsevier, vol. 86(C).
    3. 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) 201410, Department of Economics, Padjadjaran University, revised Jul 2014.
    4. Andy Sumner, 2014. "Who are likely to be the future poor in Indonesia? Evidence on primary school non-completion from six rounds of the Demographic and Health Survey, 1991-2012," Working Papers in Economics and Development Studies (WoPEDS) 201406, Department of Economics, Padjadjaran University, revised May 2014.
    5. 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) 201310, Department of Economics, Padjadjaran University, revised Jun 2013.
    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.

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    Keywords

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    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion

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