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

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  • Huppi, Monika
  • Ravallion, Martin

Abstract

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.

Suggested Citation

  • Huppi, Monika & Ravallion, Martin, 1990. "The sectoral structure of poverty during an adjustment period : evidence for Indonesia in the mid-1980s," Policy Research Working Paper Series 529, The World Bank.
    • Handle: RePEc:wbk:wbrwps:529
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    References listed on IDEAS

    as
    1. Atkinson, A B, 1987. "On the Measurement of Poverty," Econometrica, Econometric Society, vol. 55(4), pages 749-764, July.
    2. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-766, May.
    3. 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.
    4. Ahmed, Sadiq & Chhibber, Ajay, 1989. "How can Indonesia maintain creditworthiness and noninflationary growth ?," Policy Research Working Paper Series 291, The World Bank.
    5. Sen, Amartya K, 1976. "Poverty: An Ordinal Approach to Measurement," Econometrica, Econometric Society, vol. 44(2), pages 219-231, March.
    6. Thorbecke, Erik, 1991. "Adjustment, growth and income distribution in Indonesia," World Development, Elsevier, vol. 19(11), pages 1595-1614, November.
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    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation

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