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Finding out of the Determinants of Poverty Dynamics in Indonesia: Evidence from Panel Data

  • Teguh, Dartanto
  • Nurkholis, Nurkholis

This study aims to examine the determinants of poverty dynamics in Indonesia. This study applies the spell approach of poverty experience and the ordered logit model to identify the poverty status of households: poor, transient poor (-), transient poor (+) and non-poor. Observing the Susenas balanced panel dataset of 2005 and 2007 covering 8,726 households, we found that 28% of poor households classified as poor (remained poor in two periods) while 7% of non-poor households are vulnerable to being transient poor (-). Our estimations confirmed that the important factors of poverty dynamics in Indonesia are educational attainment, number of household members, physical assets, employment status, health shocks, access to electricity, and changes in the household size, in the working sector and in the microcredit program. We also found that households living in Java-Bali are more vulnerable to negative shocks while households living outside Java-Bali are relatively resilient to negative shocks.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 41185.

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Date of creation: Aug 2011
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Handle: RePEc:pra:mprapa:41185
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  1. Gary Fields & Paul Cichello & Samuel Freije & Marta Menendez & David Newhouse, 2003. "Household income dynamics: a four-country story," Journal of Development Studies, Taylor & Francis Journals, vol. 40(2), pages 30-54.
  2. repec:ebl:ecbull:v:9:y:2003:i:3:p:1-12 is not listed on IDEAS
  3. Sawada Yasuyuki & Sugawara Shinya & Shoji Masahiro & Shinkai Naoko, 2014. "The Role of Infrastructure in Mitigating Poverty Dynamics: The Case of an Irrigation Project in Sri Lanka," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 14(3), pages 28, July.
  4. Arsenio Balisacan & Ernesto Pernia & Abuzar Asra, 2003. "Revisiting growth and poverty reduction in Indonesia: what do subnational data show?," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 39(3), pages 329-351.
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  8. Bigsten, Arne & Kebede, Bereket & Shimeles, Abebe & Taddesse , Mekonnen, 2002. "Growth and Poverty Reduction in Ethiopia: Evidence from Household Panel Surveys," Working Papers in Economics 65, University of Gothenburg, Department of Economics.
  9. Sparrow, Robert & Suryahadi, Asep & Widyanti, Wenefrida, 2013. "Social health insurance for the poor: Targeting and impact of Indonesia's Askeskin programme," Social Science & Medicine, Elsevier, vol. 96(C), pages 264-271.
  10. Mckay, Andrew & Lawson, David, 2003. "Assessing the Extent and Nature of Chronic Poverty in Low Income Countries: Issues and Evidence," World Development, Elsevier, vol. 31(3), pages 425-439, March.
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  15. Haddad, Lawrence & Ahmed, Akhter, 2003. "Chronic and Transitory Poverty: Evidence from Egypt, 1997-99," World Development, Elsevier, vol. 31(1), pages 71-85, January.
  16. 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, 09.
  17. Herrera, Javier, 1999. "Ajuste económico, desigualdad y movilidad," Economics Papers from University Paris Dauphine 123456789/4994, Paris Dauphine University.
  18. Armida Alisjahbana & Arief Anshory Yusuf, 2003. "Poverty Dynamics In Indonesia: Panel Data Evidence," Working Papers in Economics and Development Studies (WoPEDS) 200303, Department of Economics, Padjadjaran University, revised Jul 2003.
  19. Riyana Miranti, 2010. "Poverty in Indonesia 1984-2002: the impact of growth and changes in inequality," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 46(1), pages 79-97.
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