EconPapers    
Economics at your fingertips  
 

Living beyond $2 a day: How Indonesia has progressed

Arief Yusuf () and Irlan Rum

No 201313, Working Papers in Economics and Development Studies (WoPEDS) from Department of Economics, Padjadjaran University

Abstract: Using a long series of household level survey data and more information on regional variation in the poor's living cost and inflation, we estimated the proportion of people living below 2005 PPP $2 a day. We found that for the period of 1990 to 2012, the $2 poverty incidence has been declining at an average rate of 2.2% per year leaving only 36.5% in 2012. The rate of the decline in the last ten years (or reformasi era, 2002-2012) has been faster (2.9% a year) than during the pre-reformasi era or the period of 1990-1996 (1.4% a year). This is in contrast to a rather slow rate of the decline in the poverty incidence with national poverty line during the reformasi era which was only 0.65% a year. We also found thatthe $2 poverty has been more concentrated among informal labor and agricultural workers. The difference between $2 poverty incidence in formal and informal labor was larger during the reformasiera, a sign that the informal labor has been rather left behind. During the reformasi era, the economic growth was a lot more income-inequalizing and a lot less pro-poor relative to growth during the period before the reformasiera. This applies to both the poor defined as those living below national poverty line or those living below $2 a day.

Keywords: poverty; $2 per day; Indonesia (search for similar items in EconPapers)
JEL-codes: J21 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cwa, nep-dev, nep-iue and nep-sea
Date: 2013-07, Revised 2013-07
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed

Downloads: (external link)
http://ceds.feb.unpad.ac.id/wopeds/201313.pdf First version, 2013 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:unp:wpaper:201313

Access Statistics for this paper

More papers in Working Papers in Economics and Development Studies (WoPEDS) from Department of Economics, Padjadjaran University Contact information at EDIRC.
Series data maintained by Arief Anshory Yusuf ().

 
Page updated 2017-09-13
Handle: RePEc:unp:wpaper:201313