Managing Risks: What do poor households in Yogyakarta do to smooth their consumption? (Synopsis of Research Results)
Abstract
Final Report/Synopsis of Research Results:
This study is an empirical investigation of asset accrual and depletion strategies used toachieve consumption smoothing among the poorest household in Yogyakarta, Indonesia. Being able to smooth consumption reflects an important dimension of wellbeing as it reflects people’s capacity to satisfy their basic needs in the present and to anticipate and prepare for future needs, thereby managing risk and reducing destabilization. Poor households in Yogyakarta face similar risks and shocks to those experienced by households elsewhere (Newhouse, 2005). However, this study is designed to compare smoothing strategies in Yogyakarta across job categories, regions, and genders in order to clarify patterns and anomalies in this context that may guide private sector investment and government policy.