Factors influencing the gender gap in poverty: the Indonesian case

Abstract

Indonesia reduced its poverty rate to a historical level of below 10%. Nevertheless, nearly 20% of the population remains vulnerable to falling into poverty. This study employs the Equally Distributed Equivalent (EDE) model finding that chronic poverty accounted for 69% while transient poverty accounted for the 30% in 2010. Access to credit, education level, and poor access to health services, influences the likelihood of chronic and transient poverty. Women face higher probabilities of remaining poor (chronic) or of falling into poverty (transitory) than men, due to a lack of access to health services and education. Women in urban areas are more likely to fall into transient poverty than men. Health and education services in rural areas are more urgently needed than in cities, as poverty is more highly associated with rural areas than in urban environments. Having larger families could increase the likelihood of chronic and transient poverty.