The Chronic Poor, the Transient Poor, and the Vulnerable in Indonesia Before and After the Crisis

Poverty and Inequality Analysis

Using cross-section data from household surveys, we estimate several categories of household poverty and vulnerability in Indonesia by combining the available information on current consumption levels, estimates of vulnerability to poverty, and estimates of expected consumption levels. The results indicate that the level of vulnerability to poverty among Indonesian households after the crisis unambiguously increased from pre-crisis levels. Furthermore, not only did the poverty rate in Indonesia increase significantly because of the crisis, but also much of this increase was due to an increase in chronic poverty. Likewise, the number of households that have high vulnerability to poverty has almost tripled. As a result, the total number of households in the vulnerable category has jumped from 18 percent of the population in 1996 to more than one third of the population in 1999.


Research Area 
Research Topic 
chronic poverty
household poverty
poverty rate
economic crisis
Publication Type 
Working Paper
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