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Destined for Destitution : Intergenerational Poverty Persistence in Indonesia

  • Yus Medina Pakpahan

    (SMERU Research Institute)

  • Daniel Suryadarma
  • Asep Suryahadi

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.

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File URL: http://saber.eaber.org/node/23041
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Paper provided by East Asian Bureau of Economic Research in its series Development Economics Working Papers with number 23041.

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Date of creation: Jan 2009
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Handle: RePEc:eab:develo:23041
Contact details of provider: Postal: JG Crawford Building #13, Asia Pacific School of Economics and Government, Australian National University, ACT 0200
Web page: http://www.eaber.org

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  1. Jere R. Behrman & Alejandro Gaviria & Miguel Székely, 2001. "Intergenerational Mobility in Latin America," JOURNAL OF LACEA ECONOMIA, LACEA - LATIN AMERICAN AND CARIBBEAN ECONOMIC ASSOCIATION.
  2. 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, 03.
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