Informality and multidimensional child poverty: evidence from urban and rural Indonesia

Despite growing attention to child poverty in developing countries, limited empirical evidence exists on how household labor informality contributes to multidimensional child poverty in Indonesia. This study addresses this gap by examining the relationship between employment status and child depriva...

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Main Authors: M. Afif Khoiruddin, Agus Suman, Ferry Prasetyia, Susilo, Erlyn Yuniashri
Format: Article
Language:English
Published: Taylor & Francis Group 2025-12-01
Series:Development Studies Research
Subjects:
Online Access:https://www.tandfonline.com/doi/10.1080/21665095.2025.2533852
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author M. Afif Khoiruddin
Agus Suman
Ferry Prasetyia
Susilo
Erlyn Yuniashri
author_facet M. Afif Khoiruddin
Agus Suman
Ferry Prasetyia
Susilo
Erlyn Yuniashri
author_sort M. Afif Khoiruddin
collection DOAJ
description Despite growing attention to child poverty in developing countries, limited empirical evidence exists on how household labor informality contributes to multidimensional child poverty in Indonesia. This study addresses this gap by examining the relationship between employment status and child deprivation using nationally representative data from the 2022 Indonesian National Socioeconomic Survey (Susenas). Multidimensional child poverty is measured through seven deprivation indicators following the Multiple Overlapping Deprivation Analysis framework. Using binary and multinomial logit regressions, we estimate the effects of formal, informal, and self-employment (in both agricultural and non-agricultural sectors) on children’s poverty status across national, rural, and urban contexts. Our findings reveal that informal employment is consistently associated with higher risks of multidimensional child poverty, particularly in rural areas. In contrast, formal employment and non-agricultural self-employment reduce poverty risks. Socio-demographic characteristics such as parental education, number of children, and single-parent status also play a critical role in shaping child deprivation. Access to social protection significantly mitigates poverty risks. The results highlight two critical policy insights: the need to facilitate transitions from informal to formal employment especially in rural areas, and the importance of integrating inclusive social protection programs that target vulnerable households to break intergenerational cycles of poverty.
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spelling doaj-art-06029d3dd7ed4bc9b8fabeea86fe29122025-08-20T03:34:36ZengTaylor & Francis GroupDevelopment Studies Research2166-50952025-12-0112110.1080/21665095.2025.2533852Informality and multidimensional child poverty: evidence from urban and rural IndonesiaM. Afif Khoiruddin0Agus Suman1Ferry Prasetyia2Susilo3Erlyn Yuniashri4Department of Economics, Brawijaya University, Malang, IndonesiaDepartment of Economics, Brawijaya University, Malang, IndonesiaDepartment of Economics, Brawijaya University, Malang, IndonesiaDepartment of Economics, Brawijaya University, Malang, IndonesiaDepartment of Economics, Brawijaya University, Malang, IndonesiaDespite growing attention to child poverty in developing countries, limited empirical evidence exists on how household labor informality contributes to multidimensional child poverty in Indonesia. This study addresses this gap by examining the relationship between employment status and child deprivation using nationally representative data from the 2022 Indonesian National Socioeconomic Survey (Susenas). Multidimensional child poverty is measured through seven deprivation indicators following the Multiple Overlapping Deprivation Analysis framework. Using binary and multinomial logit regressions, we estimate the effects of formal, informal, and self-employment (in both agricultural and non-agricultural sectors) on children’s poverty status across national, rural, and urban contexts. Our findings reveal that informal employment is consistently associated with higher risks of multidimensional child poverty, particularly in rural areas. In contrast, formal employment and non-agricultural self-employment reduce poverty risks. Socio-demographic characteristics such as parental education, number of children, and single-parent status also play a critical role in shaping child deprivation. Access to social protection significantly mitigates poverty risks. The results highlight two critical policy insights: the need to facilitate transitions from informal to formal employment especially in rural areas, and the importance of integrating inclusive social protection programs that target vulnerable households to break intergenerational cycles of poverty.https://www.tandfonline.com/doi/10.1080/21665095.2025.2533852Multidimensional child povertyinformal employmenthousehold welfarerural-urban disparityIndonesiaI32
spellingShingle M. Afif Khoiruddin
Agus Suman
Ferry Prasetyia
Susilo
Erlyn Yuniashri
Informality and multidimensional child poverty: evidence from urban and rural Indonesia
Development Studies Research
Multidimensional child poverty
informal employment
household welfare
rural-urban disparity
Indonesia
I32
title Informality and multidimensional child poverty: evidence from urban and rural Indonesia
title_full Informality and multidimensional child poverty: evidence from urban and rural Indonesia
title_fullStr Informality and multidimensional child poverty: evidence from urban and rural Indonesia
title_full_unstemmed Informality and multidimensional child poverty: evidence from urban and rural Indonesia
title_short Informality and multidimensional child poverty: evidence from urban and rural Indonesia
title_sort informality and multidimensional child poverty evidence from urban and rural indonesia
topic Multidimensional child poverty
informal employment
household welfare
rural-urban disparity
Indonesia
I32
url https://www.tandfonline.com/doi/10.1080/21665095.2025.2533852
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