TY - JOUR
T1 - The determinants of poverty dynamics in Indonesia
T2 - evidence from panel data
AU - Dartanto, Teguh
AU - Nurkholis,
N1 - Funding Information:
* We would like to thank the University of Indonesia and the Directorate General of Higher Education, Ministry of National Education, the Republic of Indonesia, for financing this research through the National Research Strategic Fund 2010 (DRPM/Hibah Strategis Na-sional/2010/I/4024). We would also like to thank Ms Lily Yunita and Mr Usman from the Institute for Economic and Social Research, University of Indonesia, for their assistance. We would like to thank Professor Mohamad Ikhsan (University of Indonesia) for providing Susenas panel data sets. Professor Shigeru Otsubo (Nagoya University) and his seminar participants provided valuable comments, as did Professor Hal Hill, and other participants of the 2011 Singapore Economic Review Conference, and Assistant Professor Mark Rebuck. We would also like to thank the three anonymous referees for their constructive and valuable comments and suggestions, which helped improve the quality of this paper. Any remaining errors are our responsibility.
PY - 2013/4
Y1 - 2013/4
N2 - We use the 'spell' approach to identifying poverty and apply an ordered logit model to examine the determinants of poverty dynamics in Indonesia, categorising households as poor, transient poor (-), transient poor (+) or non-poor. Observing the National Socio-Economic Survey (Susenas) balanced-panel data sets of 2005 and 2007, we found that 28% of poor households are classified as chronically poor (that is, remaining poor in two periods) while 7% of non-poor households are vulnerable to being transient poor (-). Our estimations confirmed that the determinants of poverty dynamics in Indonesia are educational attainment, the number of household members, physical assets, employment status, health shocks, the microcredit program, access to electricity, and changes in employment sector, employment status and the number of household members. We also found that households in Java-Bali are more vulnerable to negative shocks than those outside Java-Bali.
AB - We use the 'spell' approach to identifying poverty and apply an ordered logit model to examine the determinants of poverty dynamics in Indonesia, categorising households as poor, transient poor (-), transient poor (+) or non-poor. Observing the National Socio-Economic Survey (Susenas) balanced-panel data sets of 2005 and 2007, we found that 28% of poor households are classified as chronically poor (that is, remaining poor in two periods) while 7% of non-poor households are vulnerable to being transient poor (-). Our estimations confirmed that the determinants of poverty dynamics in Indonesia are educational attainment, the number of household members, physical assets, employment status, health shocks, the microcredit program, access to electricity, and changes in employment sector, employment status and the number of household members. We also found that households in Java-Bali are more vulnerable to negative shocks than those outside Java-Bali.
KW - government assistance
KW - poverty dynamics
KW - shocks
KW - transient poverty
KW - vulnerability
UR - http://www.scopus.com/inward/record.url?scp=84875790778&partnerID=8YFLogxK
U2 - 10.1080/00074918.2013.772939
DO - 10.1080/00074918.2013.772939
M3 - Article
AN - SCOPUS:84875790778
SN - 0007-4918
VL - 49
SP - 61
EP - 84
JO - Bulletin of Indonesian Economic Studies
JF - Bulletin of Indonesian Economic Studies
IS - 1
ER -