Analysis of Poverty Determinant in West Java Province

Sartika Y. Djamaluddin ()
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Sartika Y. Djamaluddin: Institute of Economics and Social Research, Faculty of Economics, University of Indonesia

No 201403, Working Papers in Economics and Business from Faculty of Economics and Business, University of Indonesia

Abstract: Comprehensive profiling of impoverished households plays a fundamental role in enabling the government to compose quintessential and antipoverty policies that effectively lower poverty on a significant level. This study analyzes household assets and poverty reduction policies as one of the determinant factors of poverty. This research is based on data cumulated from a national socio-economic household survey (susenas) in 2010 as well as logistic regression model to identify factors proximately associated with poverty level in Province, regency and City in West Java. The number of observations as much as 20,541 households. Upon comprehensively evaluating samples, the outcome of the research shows that West Java is facing complex issues related to poverty. All determinant factors including demographic, economy, social and government policies are identified as significantly impact on poverty rate in the region. At all province, city and regency level, size of household member and assets variables are found to be the factors that consistently and significantly determining poverty rate. At the province level, the high probability of poverty is triggered among other by the large size of households' members, family head is married and/or employed in agriculture sector or work as laborers and having low education level as well as living at house with the ground floor/bamboo. Results of regression analyses conducted in respective sample cities/regencies nevertheless illustrates that the level of influence on poverty level vary accordingly. While Tasikmalaya city and Sukabumi regency are facing more complex poverty issues to address, cause of poverty in Kuningan and Majalengka regency are identified as exactly the same.

Keywords: Poverty Determinant; Household; Logistic Regression Model; West Java (search for similar items in EconPapers)
JEL-codes: C25 D1 I32 (search for similar items in EconPapers)
Pages: 16 pages
Date: 2014-09, Revised 2014-09
New Economics Papers: this item is included in nep-agr and nep-sea
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