The Nexus of Risk-Preferences and Poverty in Indonesia

This research aims to identify the relationship between poverty and risk preference in Indonesia empirically. This research employs the Indonesia Family Life Survey 2014 (IFLS5) using the Ordinary Least Square (OLS) and quantile regression approach, one of the most extended longitudinal data, to su...

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Main Authors: Siti Aisyah Tri Rahayu, Mulyanto Mulyanto, Johadi Johadi, Muhammad Yusuf Indra Purnama
Format: Article
Language:English
Published: Laboratorium Rekayasa Sosial, Jurusan Sosiologi, FISIP Universitas Bangka Belitung 2023-06-01
Series:Society
Subjects:
Online Access:https://society.fisip.ubb.ac.id/index.php/society/article/view/453
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author Siti Aisyah Tri Rahayu
Mulyanto Mulyanto
Johadi Johadi
Muhammad Yusuf Indra Purnama
author_facet Siti Aisyah Tri Rahayu
Mulyanto Mulyanto
Johadi Johadi
Muhammad Yusuf Indra Purnama
author_sort Siti Aisyah Tri Rahayu
collection DOAJ
description This research aims to identify the relationship between poverty and risk preference in Indonesia empirically. This research employs the Indonesia Family Life Survey 2014 (IFLS5) using the Ordinary Least Square (OLS) and quantile regression approach, one of the most extended longitudinal data, to support this research design. The result reveals that poor households are more risk-averse than others across income levels. Moreover, poor people are poorly educated and mostly come from rural and disaster-prone areas. This evidence suggests that poor people from rural communities and disaster-prone regions should be prioritized and empowered to move from poverty zones due to their relatively high vulnerability.
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spelling doaj.art-8c84036b249b416ea252da5066199b982023-11-10T16:43:45ZengLaboratorium Rekayasa Sosial, Jurusan Sosiologi, FISIP Universitas Bangka BelitungSociety2338-69322597-48742023-06-0111110.33019/society.v11i1.453453The Nexus of Risk-Preferences and Poverty in IndonesiaSiti Aisyah Tri Rahayu0Mulyanto Mulyanto1Johadi Johadi2Muhammad Yusuf Indra Purnama3Universitas Sebelas MaretUniversitas Sebelas MaretUniversitas Sebelas MaretUniversitas Sebelas Maret This research aims to identify the relationship between poverty and risk preference in Indonesia empirically. This research employs the Indonesia Family Life Survey 2014 (IFLS5) using the Ordinary Least Square (OLS) and quantile regression approach, one of the most extended longitudinal data, to support this research design. The result reveals that poor households are more risk-averse than others across income levels. Moreover, poor people are poorly educated and mostly come from rural and disaster-prone areas. This evidence suggests that poor people from rural communities and disaster-prone regions should be prioritized and empowered to move from poverty zones due to their relatively high vulnerability. https://society.fisip.ubb.ac.id/index.php/society/article/view/453HouseholdIndonesia Family Life Survey (IFLS)PovertyRisk Preference
spellingShingle Siti Aisyah Tri Rahayu
Mulyanto Mulyanto
Johadi Johadi
Muhammad Yusuf Indra Purnama
The Nexus of Risk-Preferences and Poverty in Indonesia
Society
Household
Indonesia Family Life Survey (IFLS)
Poverty
Risk Preference
title The Nexus of Risk-Preferences and Poverty in Indonesia
title_full The Nexus of Risk-Preferences and Poverty in Indonesia
title_fullStr The Nexus of Risk-Preferences and Poverty in Indonesia
title_full_unstemmed The Nexus of Risk-Preferences and Poverty in Indonesia
title_short The Nexus of Risk-Preferences and Poverty in Indonesia
title_sort nexus of risk preferences and poverty in indonesia
topic Household
Indonesia Family Life Survey (IFLS)
Poverty
Risk Preference
url https://society.fisip.ubb.ac.id/index.php/society/article/view/453
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