STUDY OF DYNAMIC POVERTY IN EAST JAVA : IS HUMAN CAPITAL THE MOST APPROPRIATE WAY IN REDUCING POVERTY?
Keywords:
Poverty, Dynamic Analysis, Component Approach
Abstract
Dynamic poverty analysis distinguishes two kind of poverty: chronic and transient poverty. Chronic poverty is long term poverty while transient poverty is short term poverty. Theoretically, these two kind of poverty need different policy. Chronic poverty needs human capital development whereas transient poverty needs social safety net. This study aims to estimate chronic and transient poverty in East Java and to analyze its determinants. This research used Component Approach to estimate chronic and transient poverty. Tobit regression was employed to analyze its determinants. This study utilized Survei Sosial Ekonomi Nasional (Social Economic National Survey of Indonesia) year 2008 and year 2010. The result of this study indicates that poverty in East Java is largely comprised of chronic poverty. Chronic component of poverty is 76 percent and transient component of poverty is 24 percent. The high chronic component of poverty is found in regency of, Malang, Kediri, Sumenep, and Pasuruan. The regression result indicates that chronic and transient poverty are influenced by education of household head, gender of household head, access to credit and health insurance ownership.
JEL Classification: C01, I32, I38, J24,
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Dacuycuy, Connie Bayudan & Joseph Anthony Lim. 2013. Family Size, Household Shocks and Chronic and Transient Poverty in the Philiphines. Journal of Asian Economics, (29): 101-112
Dartanto, Teguh & Nurkholis. 2013. Finding Out The Determinant of Poverty Dynamics In Indonesia: Evidence From Panel Data. Bulletin of Indonesian Economics Studies.
Duclos, dkk. 2006. Chronic and Transient Poverty: Measurement and Estimation, with Evidence From China. Disscussion Paper Series. IZA
Edig, Xenia van & Stefan Schwarze. 2011. Short-terms Poverty Dynamics of Rural Household: Evidence from Central Sulawesi, Indonesia. Journal of Agriculture and Rural Development in the Tropics and Subtropics, (112): 141-155
Glewwe, Paul dan John Gibson. 2005. Analysis of Poverty Dynamics. Dalam United Nations Statistics Division (ed). Handbook On Poverty Statistics: Concept, Methods And Policy Use. New York: United Nations Statistics Division.
Haughton, Jonathan dan Shahidur R. Khanker. 2009. Handbook on Poverty and Inequality. Washington DC: The World Bank
Herrera, J. 1999. Ajuste Económico, Desigualdad, y Movilidad. Working Paper DT/99/07, Développement et Insertion Internationale (DIAL) Paris
Hulme, David & Andrew Shepherd. 2003. Conceptualizing Chronic Poverty. World Development, 31 (3): 403-423
Instituto Nacional de Estadistica (INE). 2010. Poverty and Its Measurement: the Presentation of a Range of Methods to Obtain Measures of Poverty, (online), (http://www.ine.es/ , diakses 18 Juli 2014).
Irianti, Septi Eka. 2013.Analisis Household Vulnerability To Poverty Dan Faktor-Faktor Yang Mempengaruhinya: Studi Pada Data Tingkat Rumah Tangga. Skripsi tidak diterbitkan. Surabaya Fakultas Ekonomi dan Bisnis Universitas Airlangga.
Jallan, J. & M. Ravallion.1998. Transient Poverty in Post-Reform Rural China. Journal of Comparative Economics, (26): 338–357.
Kimsun, Tong. 2012. Analysing Chronic Poverty in Rural Cambodia: Evidence from Panel Data. Working Paper Series (66). A CDRI Publication
Maxwell, Simon. 1999. The Meaning and Measurement of Poverty. UK: Overseas Development Institute
Moeis, J. 2007. Kemiskinan dan Pemerataan: Konsep dan Ukuran. Bahan Pengajaran Magister Perencanaan dan Kebijakan Publik (MPKP) Universitas Indonesia. Jakarta.
Muller, Christophe. 1998. The Measurement of Dynamic Poverty with Geographical and Intertemporal Price Variability. Working Paper Series (WPS) of Center for Study of African Economies.Institute of Economics and Statistics: University of Oxford
Muyanga, Milu, dkk. 2006. Transient and Chronic Rural Household Poverty: Evidence from Kenya. PMMA Working Paper (20)
Oduro, Abena D. 2002. Poverty Dynamics. Ghana: Centre For Policy Analysis
Philip, Damas dan Md. Israt Rayhan. 2004. Vulnerability and Poverty: What are the Causes and How They Related?. Bonn: ZEF Bonn
Poverty and Economics Policy (PEP). 2010. Welfare Dynamics and Panel Data. Makalah disajikan dalam Workshop on Poverty and Social Impact Analysis. Dakar-Senegal.
Rosyidi, Suherman. 2005. Pengantar Teori Ekonomi: Pendekatan Kepada Teori Makro dan Mikro. Jakarta: PT. Rajawali Grafindo Persada
Sen, Amartya. 1981. Poverty and Faminies. New York: Oxford University Press.
Shepherd, Andrew. 2007. Understanding and Explaining Chronic Poverty. CPRC Working Paper. UK: Chronic Poverty Research Centre. ODI (Overseas Development Institute).
Smith, Noel & Sue Middleton. 2007. A Review of Poverty Dynamics Research In The UK. UK: Joseph Rowntree Foundation
Spermann, Alexander. 2008. Tobit Model. Bahan Pengajaran Ekonometrika. University of Freiburg.
Suharno. 2008. Metode Pengukuran Kemiskinan Makro. Makalah disampaikan dalam Seminar pada Pusat Studi Kependudukan dan Kebijakan Universitas Gadjah Mada. Yogyakarta
Suryono, Agus. 2001. Teori dan Isu Pembangunan. Malang: UM-Press
Tim Nasional Percepatan Penenggulangan Kemiskinan (TNP2K). 2011. Percepatan Penanggulangan Kemiskinan. Jakarta: Sekretariat Wakil Presiden Republik Indonesia.
Todaro, Michael E & Stephen C. Smith. 2006. Pembangunan Ekonomi. Edisi Kesembilan. Terjemahan oleh Haris Munandar. 2006. Jakarta: Erlangga
Warda, Nila. 2010. Perubahan Status Kemiskinan di Indonesia. Skripsi tidak diterbitkan. Surabaya Fakultas Ekonomi dan Bisnis Universitas Airlangga.
World Bank. 2000. World Development Report 2000/2001:Attacking Poverty. Washington DC:World Bank
-----------------. 2003. Chronic Poverty: Scrutinizing Estimates, Patterns, Correlates and Explanation. CDRC Working Paper (21): University of Manchaster
Published
2017-09-30
How to Cite
Wahyu Wisnu Wardana. (2017). STUDY OF DYNAMIC POVERTY IN EAST JAVA : IS HUMAN CAPITAL THE MOST APPROPRIATE WAY IN REDUCING POVERTY?. East Java Economic Journal, 1(1), 20-42. https://doi.org/10.53572/ejavec.v1i1.6
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