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This paper decomposes changes in poverty into growth and redistribution components, andemploys several pro-poor growth concepts and indices to explore the growth, poverty andinequality nexus in Indonesia over the period 2002-2012. We find a ‘trickle-down’ situation,which the poor have received proportionately less benefits from growth than the non-poor.All pro-poor measures suggest that economic growth in Indonesia was particularly beneficialfor those located at the top of the distribution. Regression-based decompositions suggest thatvariation in expenditure by education characteristics that persist after controlling for otherfactors to account for around two-fifths of total household expenditure inequality inIndonesia. If poverty reduction is one of the principal objectives of the Indonesiangovernment, it is essential that policies designed to spur growth also take into account thepossible impact of growth on inequality. These findings indicate the importance of a set ofsuper pro-poor policies. Namely, policies that increase school enrolment and achievement,effective family planning programmes to reduce the birth rate and dependency load withinpoor households, facilitating urban-rural migration and labour mobility, connect leading andlagging regions and granting priorities for specific cohorts such as children, elderly,illiterate, informal workers and agricultural households in targeted interventions will serve tosimultaneously stem rising inequality and accelerate the pace of economic growth andpoverty reduction.

Item Type: MPRA Paper -

Original Title: Poverty-growth-Inequality Triangle: The Case of Indonesia-

Language: English-

Keywords: Key Words: Growth, poverty, inequality, pro-poor, decomposition-

Subjects: I - Health, Education, and Welfare > I3 - Welfare, Well-Being, and PovertyI - Health, Education, and Welfare > I3 - Welfare, Well-Being, and Poverty > I32 - Measurement and Analysis of Poverty-

Autor: Sumarto, Sudarno

Fuente: https://mpra.ub.uni-muenchen.de/57135/

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