Pathways Out of Poverty During an Economic Crisis: An Empirical Assessment of Rural Indonesia

50 Pages Posted: 20 Apr 2016

See all articles by Neil A. McCulloch

Neil A. McCulloch

World Bank - Poverty Reduction and Economic Management (PREM)

Julian Weisbrod

University of Goettingen (Gottingen)

Peter Timmer

Center for Global Development

Multiple version iconThere are 2 versions of this paper

Date Written: March 1, 2007

Abstract

Most poor people in developing countries still live in rural areas and are primarily engaged in low productivity farming activities. Thus pathways out of poverty are likely to be strongly connected to productivity increases in the rural economy, whether they are realized in farming, in rural nonfarm enterprises, or by way of rural-urban migration. The authors use cross-sectional data from the Central Statistical Board for 1993 and 2002, as well as a panel data set from the Indonesia Family Life Survey for 1993 and 2000, to show which pathways out of poverty were most successful over this period. The findings suggest that increased engagement of farmers in rural nonfarm enterprises is an important route out of rural poverty, but that most of the rural agricultural poor that exit poverty still do so while remaining rural and agricultural. So changes in agricultural prices, wages, and productivity still play a critical role in moving people out of poverty.

Keywords: Rural Poverty Reduction, Population Policies, Pro-Poor Growth and Inequality, Economic Theory & Research

Suggested Citation

McCulloch, Neil and Weisbrod, Julian and Timmer, Peter, Pathways Out of Poverty During an Economic Crisis: An Empirical Assessment of Rural Indonesia (March 1, 2007). World Bank Policy Research Working Paper No. 4173, Available at SSRN: https://ssrn.com/abstract=975844

Neil McCulloch (Contact Author)

World Bank - Poverty Reduction and Economic Management (PREM) ( email )

Jakarta Stock Exchange Bldg. Tower 2, 12th Floor
Jl. Jend. Sudirman Kav. 52-53
Jakarta, DC 12190
Indonesia

Julian Weisbrod

University of Goettingen (Gottingen) ( email )

Platz der Gottinger Sieben 3
Gottingen, D-37073
Germany

Peter Timmer

Center for Global Development

2055 L St. NW
5th floor
Washington, DC 20036
United States

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