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


  • Wenefrida Widyanti


  • Asep Suryahadi
  • Sudarno Sumarto
  • Athia Yumna


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.

Suggested Citation

  • Wenefrida Widyanti & Asep Suryahadi & Sudarno Sumarto & Athia Yumna, 2009. "The Relationship between Chronic Poverty and Household Dynamics : Evidence from Indonesia," Microeconomics Working Papers 22554, East Asian Bureau of Economic Research.
  • Handle: RePEc:eab:microe:22554

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    References listed on IDEAS

    1. Ingrid Woolard & Stephan Klasen, 2005. "Determinants of Income Mobility and Household Poverty Dynamics in South Africa," Journal of Development Studies, Taylor & Francis Journals, vol. 41(5), pages 865-897.
    2. Meenakshi, J. V. & Ray, Ranjan, 2002. "Impact of household size and family composition on poverty in rural India," Journal of Policy Modeling, Elsevier, vol. 24(6), pages 539-559, October.
    3. 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, vol. 47(4), pages 473-487, December.
    4. Asep Suryahadi & Sudarno Sumarto & Lant Pritchett, 2003. "Evolution of Poverty During the Crisis in Indonesia," Asian Economic Journal, East Asian Economic Association, vol. 17(3), pages 221-241, September.
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    Cited by:

    1. Dartanto, Teguh & Otsubo, Shigeru, 2016. "Intrageneration Poverty Dynamics in Indonesia: Households’ Welfare Mobility Before, During, and After the Asian Financial Crisis," Working Papers 117, JICA Research Institute.
    2. Adama BAH, 2013. "Estimating Vulnerability to Poverty using Panel data: Evidence from Indonesia," Working Papers 201325, CERDI.
    3. 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 23043, East Asian Bureau of Economic Research.
    4. 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.
    5. Biyase, Mduduzi & Zwane, Talent, 2017. "An Empirical Analysis of the Determinants of poverty and household welfare in South Africa," MPRA Paper 77085, University Library of Munich, Germany.
    6. Bierbaum, Mira & Gassmann, Franziska, 2012. "Chronic and transitory poverty in the Kyrgyz Republic: What can synthetic panels tell us?," MERIT Working Papers 064, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    7. Gitonga, Zachary M. & De Groote, Hugo, 2016. "Role of hybrid maize adoption on food security in Kenya: an application of two-step generalized method of moments (gmm2s)," 2016 AAAE Fifth International Conference, September 23-26, 2016, Addis Ababa, Ethiopia 246315, African Association of Agricultural Economists (AAAE).
    8. G. M. Arif & Shujaat Farooq, 2014. "Rural Poverty Dynamics in Pakistan: Evidence from Three Waves of the Panel Survey," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 53(2), pages 71-98.
    9. 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 EMS_2013_19, Research Institute, International University of Japan.
    10. 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 2012:02, Pakistan Institute of Development Economics.
    11. 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.
    12. Teguh, Dartanto & Nurkholis, Nurkholis, 2011. "Finding out of the Determinants of Poverty Dynamics in Indonesia: Evidence from Panel Data," MPRA Paper 41185, University Library of Munich, Germany.
    13. 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.
    14. Mai, Tung & Mahadevan, Renuka, 2016. "A research note on the poverty dynamics and cost of poverty inequality: Case study of Indonesia," Economic Analysis and Policy, Elsevier, vol. 49(C), pages 100-107.

    More about this item


    household composition; chronic poverty; social protection; Indonesia;

    JEL classification:

    • D10 - Microeconomics - - Household Behavior - - - General
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure


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