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The Relationship between Chronic Poverty and Household Dynamics: Evidence from Indonesia

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  • Wenefrida Dwi Widyanti
  • Asep Suryahadi
  • Sudarno Sumarto
  • Athia Yumna

Abstract

The composition of households frequently change due to births, deaths, divorces, marriages, the departure of children from home, and other compositional changes. Consequently, a large number of people undergo some fundamental change in household arrangements during relatively short periods of time. However, using data from Indonesia, this study finds that change in household composition is not a major cause of chronic poverty. Similarly, it finds no evidence that households change their composition to cope with negative shocks. Nevertheless, the study confirms that the larger the number of household members, the higher the probability that a household is chronically poor. Comparing different types of household compositions, households with a single female without children have the lowest probability of being either chronically poor or vulnerable, while single male households with or without children have the highest probability of being vulnerable. Frequent changes in household compositions imply that the use of household as the unit of analysis for poverty may undermine, or at least complicate, the conceptualization and measurement of chronic poverty. This also implies that the problem of targeting social protection programs not only relates to implementation, but also has some conceptual roots.
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  • Wenefrida Dwi Widyanti & Asep Suryahadi & Sudarno Sumarto & Athia Yumna, "undated". "The Relationship between Chronic Poverty and Household Dynamics: Evidence from Indonesia," Working Papers 339, Publications Department.
  • Handle: RePEc:agg:wpaper:339
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    References listed on IDEAS

    as
    1. Menno Pradhan & Asep Suryahadi & Sudarno Sumarto & Lant Pritchett, . "Eating Like Which 'Joneses'? An Iterative Solution to the Choice of Poverty Line Reference Group," Journal Article, Publications Department.
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    5. Menno Pradhan & Asep Suryahadi & Sudarno Sumarto & Lant Pritchett, 2001. "Eating like which “Joneses?” an Iterative Solution to the Choice of a Poverty Line “Reference Group”," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 47(4), pages 473-487, December.
    6. Asep Suryahadi & Sudarno Sumarto & Lant Pritchett, . "The Evolution of Poverty during the Crisis in Indonesia," Journal Article, Publications Department.
    7. Jalan, Jyotsna & Ravallion, Martin, 1998. "Determinants of transient and chronic poverty : evidence from rural China," Policy Research Working Paper Series 1936, The World Bank.
    8. 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, September.
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    Cited by:

    1. Nguyen Thi Nhu Nguyet & Eiji Mangyo, 2010. "Vulnerability of households to health shocks: an Indonesian study," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 46(2), pages 213-235.
    2. Adama BAH, 2013. "Estimating Vulnerability to Poverty using Panel data: Evidence from Indonesia," Working Papers 201325, CERDI.
    3. Mst. Asma Khatun & Farjana Misu & Mohammad Amirul Islam & Sheikh Mohammad Sayem, 2022. "Relationship between Poverty and Food Security: Empirical Evidence from the Enclave Area of Rural Bangladesh," Indian Journal of Human Development, , vol. 16(3), pages 448-467, December.
    4. Andy Sumner & Arief Anshory Yusuf & Yangki Imade Suara, 2014. "The Prospects of the Poor: A Set of Poverty Measures Based on the Probability of Remaining Poor (or Not) in Indonesia," Working Papers in Economics and Development Studies (WoPEDS) 201410, Department of Economics, Padjadjaran University, revised Jul 2014.
    5. Mduduzi Biyase & Talent Zwane, 2018. "An Empirical Analysis Of The Determinants Of Poverty And Household Welfare In South Africa," Journal of Developing Areas, Tennessee State University, College of Business, vol. 52(1), pages 115-130, January-M.
    6. Teguh Dartanto & Nurkholis, 2013. "The determinants of poverty dynamics in Indonesia: evidence from panel data," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 49(1), pages 61-84, April.
    7. Daniel Suryadarma & Yus Medina Pakpahan & Asep Suryahadi, 2009. "The Effects of Parental Death and Chronic Poverty on Children’s Education and Health : Evidence from Indonesia," Development Economics Working Papers 23043, East Asian Bureau of Economic Research.
    8. Adama Bah, 2015. "Estimating Vulnerability to Poverty using Panel data: Evidence from Indonesia," CERDI Working papers halshs-00936199, HAL.
    9. Mai, Tung & Mahadevan, Renuka, 2016. "A research note on the poverty dynamics and cost of poverty inequality: Case study of Indonesia," Economic Analysis and Policy, Elsevier, vol. 49(C), pages 100-107.
    10. G. M. Arif & Shujaat Farooq, 2014. "Rural Poverty Dynamics in Pakistan: Evidence from Three Waves of the Panel Survey," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 53(2), pages 71-98.
    11. Bierbaum, Mira & Gassmann, Franziska, 2012. "Chronic and transitory poverty in the Kyrgyz Republic: What can synthetic panels tell us?," MERIT Working Papers 2012-064, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    12. Purwono, Rudi & Wardana, Wahyu Wisnu & Haryanto, Tri & Khoerul Mubin, M., 2021. "Poverty dynamics in Indonesia: empirical evidence from three main approaches," World Development Perspectives, Elsevier, vol. 23(C).
    13. Teguh, Dartanto & Nurkholis, Nurkholis, 2011. "Finding out of the Determinants of Poverty Dynamics in Indonesia: Evidence from Panel Data," MPRA Paper 41185, University Library of Munich, Germany.
    14. Agus Surachman & Hartoyo, 2015. "Parental Investment and Poverty Dynamics in West Java, Indonesia," Journal of Family and Economic Issues, Springer, vol. 36(3), pages 340-352, September.
    15. Nurgül EVCİM & Sevcan GÜNEŞ & Hacer Simay KARAALP-ORHAN, 2020. "Factors Influencing the Household Relative Poverty in Turkey: Logistic Regression Analysis," Sosyoekonomi Journal, Sosyoekonomi Society, issue 28(43).
    16. Gitonga, Zachary M. & De Groote, Hugo, 2016. "Role of hybrid maize adoption on food security in Kenya: an application of two-step generalized method of moments (gmm2s)," 2016 Fifth International Conference, September 23-26, 2016, Addis Ababa, Ethiopia 246315, African Association of Agricultural Economists (AAAE).
    17. 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.
    18. Andy Sumner & Peter Edward, 2013. "From Low Income, High Poverty to High-Income, No Poverty? An Optimistic View of the Long-Run Evolution of Poverty in Indonesia By International Poverty Lines, 1984–2030," Working Papers in Economics and Development Studies (WoPEDS) 201310, Department of Economics, Padjadjaran University, revised Jun 2013.
    19. Dartanto, Teguh & Otsubo, Shigeru, 2016. "Intrageneration Poverty Dynamics in Indonesia: Households’ Welfare Mobility Before, During, and After the Asian Financial Crisis," Working Papers 117, JICA Research Institute.
    20. Andy Sumner, 2014. "Who are likely to be the future poor in Indonesia? Evidence on primary school non-completion from six rounds of the Demographic and Health Survey, 1991-2012," Working Papers in Economics and Development Studies (WoPEDS) 201406, Department of Economics, Padjadjaran University, revised May 2014.

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    More about this item

    Keywords

    household composition; chronic poverty; social protection; Indonesia;
    All these keywords.

    JEL classification:

    • D10 - Microeconomics - - Household Behavior - - - General
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure

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