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Chronic and Transient Poverty in Indonesia: A Spatial Perspective with the 2008-2010 Susenas Panel Data

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Abstract

This study analyzes poverty dynamics by region for urban and rural areas based on the 2008-2010 panel Susenas. It also conducts a probit analysis to explore the determinants of poverty based on the 2008 consumption module Susenas. We found that while 11% of rural people and 7% of urban people are chronically poor, there are a large number of transiently poor people in Indonesia. These transiently poor people have a high risk of falling into poverty occasionally. There is also a large difference in the extent of chronic and transient poverty among regions. While the government should implement policies to alleviate chronic poverty, it should at the same time introduce policies that could keep transiently poor people above the poverty line. Since there is a large regional variation in the extent of poverty, spatially differentiated poverty alleviation programs should be introduced according to the extent and nature of poverty.

Suggested Citation

  • 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.
    • Handle: RePEc:iuj:wpaper:ems_2013_19
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    File URL: http://www.iuj.ac.jp/workingpapers/index.cfm?File=EMS_2013_19.pdf
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    More about this item

    Keywords

    chronic and transient poverty; poverty dynamics; spatial perspective; panel data; Indonesia;

    JEL classification:

    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General

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