Poverty and Inequality Analysis

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This paper discusses the evolution of education and health poverty in middle-income countries using the case of Indonesia. The paper reviews the long-run empirical research on poverty in Indonesia published over the last decade since the Asian financial crisis.


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Increasing inequality is a growing concern is many parts of the world. This paper provides empirical evidence of the impact of inequality on economic growth and unemployment in the Indonesian context. Indonesia has experienced a significant and continuing increase in inequality since early 2000s.


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Economic inequality in Indonesia has been on the rise and recently reached a record high level of 0.41 measured in the Gini index of household consumption expenditure. Not only economically, the issue of rising inequality is also socially and politically important as it may harm societal stability, especially in large, diverse and young democracy plagued by widespread poverty and vulnerability amid rising expectations.


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