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Poverty Dynamics In Indonesia: Panel Data Evidence

Author

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  • Armida Alisjahbana

    (Department of Economics, Padjadjaran University)

  • Arief Anshory Yusuf

Abstract

Despite its importance (for example in order to distinguish the nature of chronic and transient poverty), good studies on poverty dynamics in Indonesia is quite rare. One important constraint is the need of panel or longitudinal data where observations of the living conditions of the same individuals or households are made at several points in time. In developing countries, the existence of this type survey, of course, is not a norm. In Indonesia, longitudinal household survey was not present until in 1993, Rand cooperation and Demographic Institute of University of Indonesia, conducted Indonesian Family Survey (IFLS), in which around 7,600 household in 13 province in Indonesia were survey and re-surveyed in 1997. This two set of data (to our knowledge) resulted in the first dataset that was specifically designed to be a panel/longitudinal data. In this paper, we would utilize this rich set of data, to study poverty dynamics in Indonesia, by dividing poverty into transient and chronic poverty. We would investigate socioeconomic characteristics of those households that belongs to transiently-poor and chronically-poor group to see any distinctive characteristics between the two. In addition to that, we would investigate whether regional factors i.e. urban-rural location, and geographical difference (such as across province or localities) would also reveal distinctive patterns. Keywords: poverty dynamics, panel data, chronic poverty, transient poverty

Suggested Citation

  • 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.
    • Handle: RePEc:unp:wpaper:200303
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    File URL: http://ceds.feb.unpad.ac.id/wopeds/200303.pdf
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    References listed on IDEAS

    as
    1. Duncan Thomas & Elizabeth Frankenberg & James P. Smith, 2001. "Lost but Not Forgotten: Attrition and Follow-up in the Indonesia Family Life Survey," Journal of Human Resources, University of Wisconsin Press, vol. 36(3), pages 556-592.
    2. Kurosaki, Takashi & 黒崎, 卓 & クロサキ, タカシ, 2003. "Measurement of Chronic and Transient Poverty: Theory and Application to Pakistan," Discussion Paper Series a436, Institute of Economic Research, Hitotsubashi University.
    3. 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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    Citations

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    Cited by:

    1. Adepoju, A., 2018. "determinants of multidimensional poverty transitions among rural households in Nigeria," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 276027, International Association of Agricultural Economists.
    2. 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.
    3. 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).
    4. 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.
    5. 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.
    6. 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.
    7. 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.
    8. KASRI, RAHMATINA & Ahmed, Habib, 2015. "Assessing Socio-Economic Development based on Maqāṣid al-Sharīʿah Principles: Normative Frameworks, Methods and Implementation in Indonesia," Islamic Economic Studies, The Islamic Research and Training Institute (IRTI), vol. 23, pages 73-100.
    9. 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.
    10. 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.
    11. G. M. Arif & Nasir Iqbal & Shujaat Farooq, 2011. "The Persistence and Transition of Rural Poverty in Pakistan: 1998-2004," PIDE-Working Papers 2011:74, Pakistan Institute of Development Economics.
    12. 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.

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    More about this item

    Keywords

    poverty dynamics; panel data; chronic poverty; transient poverty;
    All these keywords.

    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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