Probability of Getting Households Out of Poverty: Empirical Studies in Indonesia

Authors

  • Roosemarina Anggraini Rambe Universitas of Bengkulu, Indonesia
  • Purmini Purmini University of Bengkulu, Indonesia
  • Merri Anitasari University of Bengkulu, Indonesia

DOI:

https://doi.org/10.31436/ijema.v31i2.1103

Keywords:

Poverty, Working in non-agriculture sectors, Rural areas, Education, Social assistance

Abstract

This study aims at analyzing the impact of household characteristics on increasing the chances of households getting out of poverty. Independent variables in this study consist of nine household characteristics (both parents’ education, employment status, and job sector; the family size, location of residence, and social assistance received). The analytical method used is logit regression. The results showed that four out of the nine variables have a significantly positive impact on increasing the chances of getting households out of poverty: residence location, fathers working in non-agriculture sector, mothers working in non-agriculture sector, and mothers working in general. Family size has a significantly negative impact. Thus, the government should promote SME (Small Medium Enterprises) development in rural areas that support agriculture production since it will increase the chances of households escaping poverty.

References

Adeoye, I.D., W. Seini, D. Sarpong, and D. Amegashie. “Effect of Off-Farm Income on Multidimensional Poverty among Rural Farm Households in Nigeria.” International Journal of Social Economics 46, no. 9 (2019): 1081–094.

Aiyedogbon, J.O., and B.O. Ohwofasa. “Poverty and Youth Unemployment in Nigeria, 1987-2011.” International Journal of Business and Social Science 3, no. 20 (2012): 269-79.

Akerele, D., S. Momoh, S.A. Adewuyi, B.B. Phillip, and O.F. Ashaolu. “Socioeconomic Determinants of Poverty among Urban Households in South-West Nigeria.” International Journal of Social Economics 39, no. 3 (2012): 168–81.

Akwara, A.F., N.F. Akwara, J. Enwuchola, M. Adekunle, and J.E. Udaw. “Unemployment and Poverty: Implications for National Security and Good Governance in Nigeria.” International Journal of Public Administration and Management Research 2, no. 1 (2013): 1–11.

Alia, D.Y., K.A. Alia, S.M. Jossa-Jouable., and E.R. Fiamohe. “On Poverty and the Persistence of Poverty in Benin.” Journal of Economic Studies 43, no. 4 (2016): 661–76.

Baltagi, B. H. Econometric Analysis of Panel Data, 3rd Edition. Chichester, England: John Wiley & Sons, Ltd, 2005

Batana, Y.M. “Multidimensional Measurement of Poverty among Women in Sub-Saharan Africa.” Social Indicator Research 112, no. 2 (2013): 337–62.

Bilenkisi, F., M.S. Gungor, and G. Tapsin. “The Impact of Household Heads’ Education Levels on the Poverty Risk: The Evidence from Turkey.” Educational Sciences: Theory & Practice 15, no. 2 (2015): 337-48.

Crespo, N., S.B. Moreira, and N. Simões. “Who are the poor? Who are the rich? Evidence for Portugal.” International Journal of Social Economics 40, no. 6 (2013): 579–90.

Fernández-Ramos, J., A.K. Garcia-Guerra, J. Garza-Rodriguez, and G. Morales-Ramirez. “The dynamics of poverty transitions in Mexico.” International Journal of Social Economics 43, no. 11 (2016): 1082–095.

Filandri, M., and E. Struffolino. “Individual and Household In-Work Poverty in Europe: Understanding the Role of Labor Market Characteristics.” European Societies 21, no. 1 (2019): 130–57.

Glauben, T., T. Herzfeld, S. Rozelle, and X. Wang. “Persistent Poverty in Rural China: Where, Why, and How to Escape?” World Development 40, no. 4 (2012): 784–95.

Gomo, C. “Government Transfers, Income Inequality, and Poverty in South Africa.” International Journal of Social Economics 46, no. 12 (2019): 1349–68.

Gounder, N. “Correlates of Poverty in Fiji: An Analysis of Individual, Household and Community Factors Related to Poverty.” International Journal of Social Economics 40, no. 10 (2013): 923–38.

Gustafsson, B., and D. Sai. “Growing into Relative Income Poverty: Urban China, 1988–2013.” Social Indicators Research 147, no. 1 (2020): 73–94.

Hall, R.E., and M. Lieberman. Economics: Principles and Application. 3rd Edition. Australia: Thomson South-Western, 2005.

Haughton, J., and S.R. Khandker. Handbook on Poverty + Inequality. The World Bank, 2009.

Iqbal, A., A. Siddiqui, and M. Zafar. “A Geographically Disaggregated Analysis of Multidimensional Poverty in Punjab.” International Journal of Social Economics 47, no. 3 (2020): 365–83.

Kementerian PPN/BAPPENAS. Analisis Wilayah dengan Kemiskinan Tinggi. Kedeputian Bidang Kependudukan dan Ketenagakerjaan, Kementerian PPN/BAPPENAS. Cetakan pertama. Desember 2018.

Kraay, A., and D. McKenzie. “Do Poverty Traps Exist? Assessing the Evidence.” Journal of Economic Perspectives 28, no. 3 (2014): 127–48.

Loría, E. “Poverty Trap in Mexico, 1992-2016.” International Journal of Development Issues 19, no. 3 (2020): 277–301.

Meo, M.S., V.J. Khan, T.O. Ibrahim, S. Khan, S. Ali, and K. Noor. “Asymmetric Impact of Inflation and Unemployment on Poverty in Pakistan: New Evidence from Asymmetric ARDL cointegration.” Asia Pacific Journal of Social Work and Development 28, no. 4 (2018): 295–310.

Muthalib, A.A., P. Adam, Rostin, Z. Saenong, and L.O. Suriadi. “The Influence of Fuel Prices and Unemployment Rates Towards the Poverty Level in Indonesia.” International Journal of Energy Economics and Policy 8, no. 3 (2018): 37–42.

Nguyen, C., V. Linh, and T. Nguyen. “Urban Poverty in Vietnam: Determinants and Policy Implications.” International Journal of Development Issues, 12, no. 2 (2013): 110–39.

Nurkse, Ragnar. “The Theory of Development and the Idea of Balanced Growth.” In Developing the Underdeveloped Countries edited by A.B. Mountjoy, 115-128. London: Palgrave Macmillan UK, 1971.

Sadaquat, M.B., and Q.A. Sheikh. “Employment Situation of Women in Pakistan.” International Journal of Social Economics 38, no. 2 (2011): 98–113.

Satrio, I. “Sektor Pertanian: Faktor Utama Penentu Kemiskinan di Jawa Barat.” Agroekonomika 7, no. 2 (2018): 176–87.

Shimeles, A., and A. Verdier-Chouchane. “The Key Role of Education in Reducing Poverty in South Sudan.” African Development Review 28 (2016): 162–76.

Ukwueze, E.R., and E.O. Nwosu. “Does Higher Education Reduce Poverty among Youths in Nigeria?” Asian Economic and Financial Review 4, no. 1 (2014): 1–19.

Wooldridge, J.M. Econometric Analysis of Cross Section and Panel Data. London, England: The MIT Press, 2001

Yusuf, A.A. “The Direct and Indirect Effect of Cash Transfers: The Case of Indonesia.” International Journal of Social Economics 45, no. 5 (2018): 792–806.

Zhang, H. “The Poverty Trap of Education: Education-poverty Connections in Western China.” International Journal of Educational Development 38 (2014): 47–58.

Downloads

Published

2023-12-28

How to Cite

Rambe, R. A., Purmini, P., & Anitasari, M. (2023). Probability of Getting Households Out of Poverty: Empirical Studies in Indonesia. International Journal of Economics, Management and Accounting, 31(2), 397–416. https://doi.org/10.31436/ijema.v31i2.1103

Issue

Section

Articles