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Analysis of Poverty Determinant in West Java Province

Author

Listed:
  • Sartika Djamaluddin

    (Institute of Economics and Social Research, Faculty of Economics, University of Indonesia)

Abstract
Comprehensive profiling of impoverished households plays a fundamental role in enabling the government to compose quintessential and antipoverty policies that effectively lower poverty on a significant level. This study analyzes household assets and poverty reduction policies as one of the determinant factors of poverty. This research is based on data cumulated from a national socio-economic household survey (susenas) in 2010 as well as logistic regression model to identify factors proximately associated with poverty level in Province, regency and City in West Java. The number of observations as much as 20,541 households. Upon comprehensively evaluating samples, the outcome of the research shows that West Java is facing complex issues related to poverty. All determinant factors including demographic, economy, social and government policies are identified as significantly impact on poverty rate in the region. At all province, city and regency level, size of household member and assets variables are found to be the factors that consistently and significantly determining poverty rate. At the province level, the high probability of poverty is triggered among other by the large size of households' members, family head is married and/or employed in agriculture sector or work as laborers and having low education level as well as living at house with the ground floor/bamboo. Results of regression analyses conducted in respective sample cities/regencies nevertheless illustrates that the level of influence on poverty level vary accordingly. While Tasikmalaya city and Sukabumi regency are facing more complex poverty issues to address, cause of poverty in Kuningan and Majalengka regency are identified as exactly the same.

Suggested Citation

  • Sartika Djamaluddin, 2014. "Analysis of Poverty Determinant in West Java Province," Working Papers in Economics and Business 201403, Faculty of Economics and Business, University of Indonesia, revised Sep 2014.
    • Handle: RePEc:lpe:wpecbs:201403
    as

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    File URL: http://econ.feb.ui.ac.id/uploads/201403.pdf
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    References listed on IDEAS

    as
    1. Geda, A. & de Jong, N. & Mwabu, G. & Kimenyi, M.S., 2001. "Determinants of poverty in Kenya : a household level analysis," ISS Working Papers - General Series 19095, International Institute of Social Studies of Erasmus University Rotterdam (ISS), The Hague.
    2. Jonathan Haughton & Shahidur R. Khandker, 2009. "Handbook on Poverty and Inequality," World Bank Publications - Books, The World Bank Group, number 11985.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Poverty Determinant; Household; Logistic Regression Model; West Java;
    All these keywords.

    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • D1 - Microeconomics - - Household Behavior
    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities

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