Publication:
Quantifying Vulnerability to Poverty : A Proposed Measure, Applied to Indonesia

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dc.contributor.authorPritchett, Lant
dc.contributor.authorSuryahadi, Asep
dc.contributor.authorSumarto, Sudarno
dc.date.accessioned2015-01-28T16:16:02Z
dc.date.available2015-01-28T16:16:02Z
dc.date.issued2000-09
dc.description.abstractVulnerability is an important aspect of households' experience of poverty. Many households, while not currently in poverty, recognize that they are vulnerable to events - a bad harvest, a lost job, an illness, and unexpected expense, an economic downturn - that could easily push them into poverty. Most operational measures define poverty as some function of the shortfall of current income, or consumption expenditures from a poverty line, and hence measure poverty only at a single point in time. The authors propose a simple expansion of those measures to quantify vulnerability to poverty. They define vulnerability as a probability, the risk that a household will experience at least one episode of poverty in the near future. A household is defined as vulnerable if it has 50-50 odds, or worse of falling into poverty. Using those definitions, they calculate the "vulnerability of poverty line" (VPL) as the level of expenditures below which a household is vulnerable to poverty. The VPL allows the calculation of a "headcount vulnerability rate" (the proportion of households vulnerable to poverty), a direct analogue of the "headcount poverty rate". The authors implement this approach using two sets of panel data from Indonesia. First they show that if the poverty line is set so that the headcount poverty rate is twenty percent, the proportion of households vulnerable to poverty is roughly 30-50 percent. In addition to the twenty percent currently poor, an additional 10-30 percent of the population is at substantial risk of poverty. They illustrate the usefulness of this approach for targeting, by examining differences in vulnerability between households by gender, level of education, urban-rural residence, land-holding status, and sector of occupation of the head of household.en
dc.identifier.doi10.1596/1813-9450-2437
dc.identifier.urihttps://hdl.handle.net/10986/21355
dc.language.isoen_US
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper;No. 2437
dc.rightsCC BY 3.0 IGO
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo
dc.subjectpoverty measurement
dc.subjectquantitative analysis
dc.subjectvulnerability
dc.subjecthousehold welfare indicators
dc.subjecthousehold expenditure surveys
dc.subjectpoverty incidence
dc.subjectconsumption patterns
dc.subjectincome gaps
dc.subjectheadcount index
dc.subjectpanel analysis
dc.subjectgender issues
dc.subjectlevel of education
dc.subjecturban-rural drift
dc.subjectland ownership
dc.subjectoccupational classification
dc.subjectaverage level
dc.subjectchronic poverty
dc.subjectchronically poor
dc.subjectconsumption expenditures
dc.subjectconsumption module
dc.subjectcounterfactual
dc.subjectdata set
dc.subjectdata sets
dc.subjectdecomposable poverty measures
dc.subjectdensity function
dc.subjectdeveloped countries
dc.subjectdeveloping countries
dc.subjectdevelopment economics
dc.subjectdevelopment studies
dc.subjecteconomics
dc.subjecteconomies of scale
dc.subjecteducation level
dc.subjecterror term
dc.subjectexpenditures
dc.subjectfemale-headed households
dc.subjectfinancial support
dc.subjectheadcount poverty
dc.subjectheadcount ratio
dc.subjecthealth insurance
dc.subjecthousehold characteristics
dc.subjecthousehold consumption
dc.subjecthousehold consumption expenditures
dc.subjecthousehold expenditures
dc.subjecthousehold head
dc.subjecthousehold survey
dc.subjectincome
dc.subjectincome risk
dc.subjectindicator targeting
dc.subjectinequality
dc.subjectinformal sector
dc.subjectinsurance
dc.subjectmean consumption
dc.subjectmean expenditures
dc.subjectmean income
dc.subjectnational poverty
dc.subjectnational poverty reduction strategy
dc.subjectold age
dc.subjectparticipatory poverty
dc.subjectparticipatory poverty assessments
dc.subjectpolicy implications
dc.subjectpolicy level
dc.subjectpolicy research
dc.subjectpolitical economy
dc.subjectpolitical economy of targeting
dc.subjectpoor households
dc.subjectpoverty analysis
dc.subjectpoverty assessments
dc.subjectpoverty dynamics
dc.subjectpoverty line
dc.subjectpoverty lines
dc.subjectpoverty measure
dc.subjectpoverty profiles
dc.subjectpoverty programs
dc.subjectpoverty rate
dc.subjectpoverty rates
dc.subjectpoverty reduction
dc.subjectrural areas
dc.subjectrural households
dc.subjectrural residence
dc.subjectsafety net
dc.subjectsafety nets
dc.subjectsample size
dc.subjectsavings
dc.subjectsocial development
dc.subjectsocial impacts
dc.subjectsocial insurance
dc.subjectsocial insurance programs
dc.subjectsocial protection
dc.subjectsocial security
dc.subjectstandard deviation
dc.subjecttargeting
dc.subjecttransient poverty
dc.subjecttransition economies
dc.subjectunemployment
dc.subjecturban areas
dc.subjecturban households
dc.titleQuantifying Vulnerability to Poverty : A Proposed Measure, Applied to Indonesiaen
dspace.entity.typePublication
okr.crossref.titleQuantifying Vulnerability to Poverty: A Proposed Measure, Applied to Indonesia
okr.date.disclosure2000-10-07
okr.date.doiregistration2025-04-10T10:53:40.213133Z
okr.doctypePublications & Research
okr.doctypePublications & Research::Policy Research Working Paper
okr.globalpracticePoverty
okr.guid131651468751147913
okr.identifier.doi10.1596/1813-9450-2437
okr.identifier.reportWPS2437
okr.language.supporteden
okr.region.administrativeEast Asia and Pacific
okr.region.countryIndonesia
okr.topicEnvironment::Environmental Economics & Policies
okr.topicHealth, Nutrition and Population::Health Economics & Finance
okr.topicHealth, Nutrition and Population::Health Systems Development & Reform
okr.topicPoverty Reduction
okr.topicPoverty Reduction::Achieving Shared Growth
okr.topicPoverty Reduction::Poverty Assessment
okr.topicPoverty Reduction::Poverty Reduction Strategies
okr.topicPoverty Reduction::Services & Transfers to Poor
okr.unitEnvironment and Social Development Sector Unit, East Asia and Pacific Region
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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