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The sectoral structure of poverty during an adjustment period : evidence for Indonesia in the mid-1980s

  • Huppi, Monika
  • Ravallion, Martin

The authors examine the structure of poverty in Indonesia by sector of employment, and how it changed during the adjustment period, 1984 to 1987. They find that, while aggregate poverty decreased during the period, the gains to the poor were quite uneven across regions and sectors. Gains to the rural sector in key regions were quantitatively important to Indonesia's success in alleviating poverty, they found. Most poverty exists -- and most gains in alleviating poverty were made -- in the rural farming sector. These gains were associated with crop diversification and continued growth in off-farm employment. The government's adjustment program favored rural areas and were crucial to Indonesia's evident success at maintaining momentum in alleviating poverty. However, one should not underrate the favorable conditions in Indonesia when adjustment started.

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Paper provided by The World Bank in its series Policy Research Working Paper Series with number 529.

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Date of creation: 31 Oct 1990
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Handle: RePEc:wbk:wbrwps:529
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  1. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-66, May.
  2. Ravallion, Martin & van de Walle, Dominique, 1991. "Urban-rural cost-of-living differentials in a developing economy," Journal of Urban Economics, Elsevier, vol. 29(1), pages 113-127, January.
  3. Ahmed, Sadiq & Chhibber, Ajay, 1989. "How can Indonesia maintain creditworthiness and noninflationary growth ?," Policy Research Working Paper Series 291, The World Bank.
  4. Sen, Amartya K, 1976. "Poverty: An Ordinal Approach to Measurement," Econometrica, Econometric Society, vol. 44(2), pages 219-31, March.
  5. Atkinson, A B, 1987. "On the Measurement of Poverty," Econometrica, Econometric Society, vol. 55(4), pages 749-64, July.
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