IDEAS home Printed from https://ideas.repec.org/a/taf/bindes/v52y2016i3p379-402.html
   My bibliography  Save this article

The Development of Inequality and Poverty in Indonesia, 1932--2008

Author

Listed:
  • Bas van Leeuwen
  • Péter Földvári

Abstract

We estimate inequality in Indonesia between 1932 and 2008. Inequality increased at the start of this period but declined sharply from the 1960s onwards. The increase was due to a shift from domestic to export agriculture over the period up to the Great Depression. During the 1930s, as the price of export crops declined, the income of rich farmers suffered a blow. Yet this was counterbalanced by an increasing gap between expenditures in the urban and rural sectors, causing an overall rise in inequality. As for the second half of the century, we find that the employment shift towards manufacturing and services—combined with an increase in labour productivity in agriculture—accounts for inequality’s decline, which was halted in the 1990s. These inequality trends affected poverty as well, but prior to the 1940s the negative impact of the rise in inequality was offset by an increase in per capita GDP. Between 1950 and 1980 a decline in inequality, combined with increased per capita GDP, rapidly raised a large portion of the population above the poverty line.

Suggested Citation

  • Bas van Leeuwen & Péter Földvári, 2016. "The Development of Inequality and Poverty in Indonesia, 1932--2008," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 52(3), pages 379-402, September.
    • Handle: RePEc:taf:bindes:v:52:y:2016:i:3:p:379-402
    DOI: 10.1080/00074918.2016.1184226
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/00074918.2016.1184226
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/00074918.2016.1184226?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Frankenberg, E. & Thomas, D. & Beegle, K., 1999. "The Real Costs of Indonesia's Economic Crisis: Preliminary Findings from the Indonesia Family Life Surveys," Papers 99-04, RAND - Labor and Population Program.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Hal Hill, 2020. "Indonesian Living Standards over 50 Years: A Multidimensional Analysis," Asian Economic Journal, East Asian Economic Association, vol. 34(3), pages 249-274, September.
    2. Peter Timmer, 2018. "Pro-poor growth in Indonesia: Challenging the pessimism of Myrdal's Asian Drama," WIDER Working Paper Series wp-2018-103, World Institute for Development Economic Research (UNU-WIDER).
    3. Peter Timmer, 2018. "Pro-poor growth in Indonesia: Challenging the pessimism of Myrdal’s Asian Drama," WIDER Working Paper Series 103, World Institute for Development Economic Research (UNU-WIDER).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mahmud, Mahreen & Riley, Emma, 2021. "Household response to an extreme shock: Evidence on the immediate impact of the Covid-19 lockdown on economic outcomes and well-being in rural Uganda," World Development, Elsevier, vol. 140(C).
    2. Pritchett, Lant & Sumarto, Sudarno & Suryahadi, Asep, 2001. "Targeted Programs in an Economic Crisis: Empirical Findings from Indonesia’s Experience," MPRA Paper 58727, University Library of Munich, Germany.
    3. World Bank, 2001. "Thailand - Secondary Education for Employment (Vol. 2 of 2) : Background Papers," World Bank Publications - Reports 15494, The World Bank Group.
    4. Sarah Xue Dong, 2017. "The differential impact of economic crisis on men and women, and its connection to intra-household bargaining," WIDER Working Paper Series wp-2017-134, World Institute for Development Economic Research (UNU-WIDER).
    5. James A. Levinsohn & Steven T. Berry & Jed Friedman, 2003. "Impacts of the Indonesian Economic Crisis.Price Changes and the Poor," NBER Chapters, in: Managing Currency Crises in Emerging Markets, pages 393-428, National Bureau of Economic Research, Inc.
    6. Steven A. Block & Lynnda Keiss & Patrick Webb & S. Kosen & Regina Moench-Pfanner & Martin W. Bloem & C. Peter Timmer, 2002. "Did Indonesia's Cries of 1997/98 Affect Child Nutrition? A Cohort Decomposition Analysis of National Nutrition Surveillance Data," Working Papers in Food Policy and Nutrition 05, Friedman School of Nutrition Science and Policy.
    7. Paxson, Christina & Schady, Norbert, 2004. "Child health and the 1988-92 economic crisis in Peru," Policy Research Working Paper Series 3260, The World Bank.
    8. Tsaneva, Magda, 2017. "Does school Matter? Learning outcomes of Indonesian children after dropping out of school," World Development Perspectives, Elsevier, vol. 6(C), pages 1-10.
    9. Susan Olivia & John Gibson, 2013. "Using Engel curves to measure CPI bias for Indonesia," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 49(1), pages 85-101, April.
    10. Stefano Pagiola, 2004. "Deforestation and Land Use Changes Induced by the East Asian Economic Crisis," Others 0405006, University Library of Munich, Germany.
    11. David J. McKenzie, 2006. "The Consumer Response to the Mexican Peso Crisis," Economic Development and Cultural Change, University of Chicago Press, vol. 55, pages 139-172.
    12. Kevane, Michael & Levine, David I., 2000. "The Changing Status of Daughters in Indonesia," Institute for Research on Labor and Employment, Working Paper Series qt09m817c0, Institute of Industrial Relations, UC Berkeley.
    13. Tushar Bharati & Adnan M. S. Fakir & Wina Yoman, 2024. "Internal Migration and Labor Market Outcomes in Indonesia," Economic Development and Cultural Change, University of Chicago Press, vol. 72(2), pages 997-1040.
    14. Christopher McKelvey & Duncan Thomas & Elizabeth Frankenberg, 2012. "Fertility Regulation in an Economic Crisis," Economic Development and Cultural Change, University of Chicago Press, vol. 61(1), pages 7-38.
    15. Nitya Rao, 2018. "Global Agendas, Local Norms: Mobilizing around Unpaid Care and Domestic Work in Asia," Development and Change, International Institute of Social Studies, vol. 49(3), pages 735-758, May.
    16. M. Manacorda & F.C. Rosati, 2008. "Industrial structure and child labour. Evidence from Brazil," UCW Working Paper 44, Understanding Children's Work (UCW Programme).
    17. Shahin Yaqub, 2003. "Relating Severe Poverty and Chronic Poverty," Working Papers wpdea0307, Department of Applied Economics at Universitat Autonoma of Barcelona.
    18. Duflo, Esther, 2004. "The medium run effects of educational expansion: evidence from a large school construction program in Indonesia," Journal of Development Economics, Elsevier, vol. 74(1), pages 163-197, June.
    19. Graeme Hugo, 2000. "The Impact of the Crisis on Internal Population Movement in Indonesia," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 36(2), pages 115-138.
    20. Ronald Mendoza & Nicholas Rees, 2009. "Infant Mortality During Economic Downturns and Recovery," Working papers 0904, UNICEF,Division of Policy and Strategy.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:bindes:v:52:y:2016:i:3:p:379-402. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/CBIE20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.