Destined for Destitution: Intergenerational Poverty Persistence in Indonesia

14 Pages Posted: 5 Jan 2010

See all articles by Yus Medina Pakpahan

Yus Medina Pakpahan

affiliation not provided to SSRN

Daniel Suryadarma

Australian National University (ANU) - Arndt-Corden Department of Economics; SMERU Research Institute

Asep Suryahadi

SMERU Research Institute

Date Written: January 1, 2009

Abstract

We estimate intergenerational poverty persistence in Indonesia using a panel dataset. This is the first such study done to look at the issue in the Indonesian context. In contrast to the majority of studies on this issue, we include controls for many household and individual characteristics, including one for living arrangements. Moreover, to circumvent data issues that plague earnings data in developing countries, we use chronic poverty status as a long-term parental welfare measure. We find substantial intergenerational mobility away from poverty among children from poor households. However, we find that children growing up in chronically poor households have a 31 percentage point higher risk of continuing to live in poverty as adults compared with children from non-chronically poor households.

Keywords: chronic poverty, intergenerational transmission, poverty dynamics, children

Suggested Citation

Pakpahan, Yus Medina and Suryadarma, Daniel and Suryahadi, Asep, Destined for Destitution: Intergenerational Poverty Persistence in Indonesia (January 1, 2009). Chronic Poverty Research Centre Working Paper No. 134, Available at SSRN: https://ssrn.com/abstract=1531697 or http://dx.doi.org/10.2139/ssrn.1531697

Yus Medina Pakpahan

affiliation not provided to SSRN ( email )

Daniel Suryadarma

Australian National University (ANU) - Arndt-Corden Department of Economics ( email )

ANU College of Asia and the Pacific
J.G. Crawford Building, #132, Lennox Crossing
Canberra, Australian Capital Territory 0200
Australia

SMERU Research Institute ( email )

Jl. Pandeglang No. 30
Jakarta, 10310
Indonesia
62 21 31936336 (Phone)
62 21 31930850 (Fax)

HOME PAGE: http://www.smeru.or.id

Asep Suryahadi (Contact Author)

SMERU Research Institute ( email )

Jl. Cikini Raya No. 10A
Jakarta, 10330
Indonesia

HOME PAGE: http://www.smeru.or.id

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