Quantifying Vulnerability to Poverty : A Proposed Measure, Applied to Indonesia Pritchett, Lant Suryahadi, Asep Sumarto, Sudarno 2015-01-28T16:16:02Z 2015-01-28T16:16:02Z 2000-09
dc.description.abstract Vulnerability 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.language.iso en_US
dc.publisher World Bank, Washington, DC
dc.relation.ispartofseries Policy Research Working Paper;No. 2437
dc.rights CC BY 3.0 IGO
dc.subject poverty measurement
dc.subject quantitative analysis
dc.subject vulnerability
dc.subject household welfare indicators
dc.subject household expenditure surveys
dc.subject poverty incidence
dc.subject consumption patterns
dc.subject income gaps
dc.subject headcount index
dc.subject panel analysis
dc.subject gender issues
dc.subject level of education
dc.subject urban-rural drift
dc.subject land ownership
dc.subject occupational classification
dc.subject average level
dc.subject chronic poverty
dc.subject chronically poor
dc.subject consumption expenditures
dc.subject consumption module
dc.subject counterfactual
dc.subject data set
dc.subject data sets
dc.subject decomposable poverty measures
dc.subject density function
dc.subject developed countries
dc.subject developing countries
dc.subject development economics
dc.subject development studies
dc.subject economics
dc.subject economies of scale
dc.subject education level
dc.subject error term
dc.subject expenditures
dc.subject female-headed households
dc.subject financial support
dc.subject headcount poverty
dc.subject headcount ratio
dc.subject health insurance
dc.subject household characteristics
dc.subject household consumption
dc.subject household consumption expenditures
dc.subject household expenditures
dc.subject household head
dc.subject household survey
dc.subject income
dc.subject income risk
dc.subject indicator targeting
dc.subject inequality
dc.subject informal sector
dc.subject insurance
dc.subject mean consumption
dc.subject mean expenditures
dc.subject mean income
dc.subject national poverty
dc.subject national poverty reduction strategy
dc.subject old age
dc.subject participatory poverty
dc.subject participatory poverty assessments
dc.subject policy implications
dc.subject policy level
dc.subject policy research
dc.subject political economy
dc.subject political economy of targeting
dc.subject poor households
dc.subject poverty analysis
dc.subject poverty assessments
dc.subject poverty dynamics
dc.subject poverty line
dc.subject poverty lines
dc.subject poverty measure
dc.subject poverty profiles
dc.subject poverty programs
dc.subject poverty rate
dc.subject poverty rates
dc.subject poverty reduction
dc.subject rural areas
dc.subject rural households
dc.subject rural residence
dc.subject safety net
dc.subject safety nets
dc.subject sample size
dc.subject savings
dc.subject social development
dc.subject social impacts
dc.subject social insurance
dc.subject social insurance programs
dc.subject social protection
dc.subject social security
dc.subject standard deviation
dc.subject targeting
dc.subject transient poverty
dc.subject transition economies
dc.subject unemployment
dc.subject urban areas
dc.subject urban households
dc.title Quantifying Vulnerability to Poverty : A Proposed Measure, Applied to Indonesia en
dspace.entity.type Publication 2000-10-07
okr.doctype Publications & Research
okr.doctype Publications & Research :: Policy Research Working Paper
okr.globalpractice Poverty
okr.identifier.doi 10.1596/1813-9450-2437 WPS2437
okr.language.supported en
okr.region.administrative East Asia and Pacific Indonesia
okr.topic Environment :: Environmental Economics & Policies
okr.topic Health, Nutrition and Population :: Health Economics & Finance
okr.topic Health, Nutrition and Population :: Health Systems Development & Reform
okr.topic Poverty Reduction
okr.topic Poverty Reduction :: Achieving Shared Growth
okr.topic Poverty Reduction :: Poverty Assessment
okr.topic Poverty Reduction :: Poverty Reduction Strategies
okr.topic Poverty Reduction :: Services & Transfers to Poor
okr.unit Environment and Social Development Sector Unit, East Asia and Pacific Region
relation.isSeriesOfPublication 26e071dc-b0bf-409c-b982-df2970295c87
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