The Interplay of Regional and Ethnic Inequalities in Malaysian Poverty Dynamics

This study employs a synthetic panel approach based on nationally representative micro-level data to track poverty and income mobility in Malaysia in 2004–16. On aggregate, there were large reductions in chronic poverty and increases in persistent...

Full description

Bibliographic Details
Main Authors: Rongen, Gerton, Ali Ahmad, Zainab, Lanjouw, Peter, Simler, Kenneth
Format: Working Paper
Language:English
Published: World Bank, Washington, DC 2022
Subjects:
Online Access:http://documents.worldbank.org/curated/undefined/626721641828785529/The-Interplay-of-Regional-and-Ethnic-Inequalities-in-Malaysian-Poverty-Dynamics
http://hdl.handle.net/10986/36820
id okr-10986-36820
recordtype oai_dc
spelling okr-10986-368202022-01-14T05:10:36Z The Interplay of Regional and Ethnic Inequalities in Malaysian Poverty Dynamics Rongen, Gerton Ali Ahmad, Zainab Lanjouw, Peter Simler, Kenneth POVERTY DYNAMICS ETHNIC INEQUALITY REGIONAL INEQUALITY SYNTHETIC PANEL INCOME MOBILITY POVERTY REDUCTION This study employs a synthetic panel approach based on nationally representative micro-level data to track poverty and income mobility in Malaysia in 2004–16. On aggregate, there were large reductions in chronic poverty and increases in persistent economic security, but those who remained poor in 2016 were increasingly likely to be poor in a structural sense. Further, the poverty and income dynamics differ notably across geographic dimensions. Such disparities are most striking when comparing affluent urban Peninsular Malaysia with poorer rural East Malaysia. Although there are important differences in welfare levels between the main ethnic groups in Malaysia, the mobility trends generally point in the same direction. While the findings show that there is still scope for poverty reduction through the reduction of interethnic inequalities, the study underscores the importance of taking regional inequalities into account to ensure a fairer distribution of socioeconomic opportunities for poor and vulnerable Malaysians. Hence, addressing chronic poverty is likely to require additional attention to less developed geographic areas, as a complement to the current policies that are largely ethnicity-based. 2022-01-13T15:48:23Z 2022-01-13T15:48:23Z 2022-01 Working Paper http://documents.worldbank.org/curated/undefined/626721641828785529/The-Interplay-of-Regional-and-Ethnic-Inequalities-in-Malaysian-Poverty-Dynamics http://hdl.handle.net/10986/36820 English Policy Research Working Paper;No. 9898 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper East Asia and Pacific Malaysia
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic POVERTY DYNAMICS
ETHNIC INEQUALITY
REGIONAL INEQUALITY
SYNTHETIC PANEL
INCOME MOBILITY
POVERTY REDUCTION
spellingShingle POVERTY DYNAMICS
ETHNIC INEQUALITY
REGIONAL INEQUALITY
SYNTHETIC PANEL
INCOME MOBILITY
POVERTY REDUCTION
Rongen, Gerton
Ali Ahmad, Zainab
Lanjouw, Peter
Simler, Kenneth
The Interplay of Regional and Ethnic Inequalities in Malaysian Poverty Dynamics
geographic_facet East Asia and Pacific
Malaysia
relation Policy Research Working Paper;No. 9898
description This study employs a synthetic panel approach based on nationally representative micro-level data to track poverty and income mobility in Malaysia in 2004–16. On aggregate, there were large reductions in chronic poverty and increases in persistent economic security, but those who remained poor in 2016 were increasingly likely to be poor in a structural sense. Further, the poverty and income dynamics differ notably across geographic dimensions. Such disparities are most striking when comparing affluent urban Peninsular Malaysia with poorer rural East Malaysia. Although there are important differences in welfare levels between the main ethnic groups in Malaysia, the mobility trends generally point in the same direction. While the findings show that there is still scope for poverty reduction through the reduction of interethnic inequalities, the study underscores the importance of taking regional inequalities into account to ensure a fairer distribution of socioeconomic opportunities for poor and vulnerable Malaysians. Hence, addressing chronic poverty is likely to require additional attention to less developed geographic areas, as a complement to the current policies that are largely ethnicity-based.
format Working Paper
author Rongen, Gerton
Ali Ahmad, Zainab
Lanjouw, Peter
Simler, Kenneth
author_facet Rongen, Gerton
Ali Ahmad, Zainab
Lanjouw, Peter
Simler, Kenneth
author_sort Rongen, Gerton
title The Interplay of Regional and Ethnic Inequalities in Malaysian Poverty Dynamics
title_short The Interplay of Regional and Ethnic Inequalities in Malaysian Poverty Dynamics
title_full The Interplay of Regional and Ethnic Inequalities in Malaysian Poverty Dynamics
title_fullStr The Interplay of Regional and Ethnic Inequalities in Malaysian Poverty Dynamics
title_full_unstemmed The Interplay of Regional and Ethnic Inequalities in Malaysian Poverty Dynamics
title_sort interplay of regional and ethnic inequalities in malaysian poverty dynamics
publisher World Bank, Washington, DC
publishDate 2022
url http://documents.worldbank.org/curated/undefined/626721641828785529/The-Interplay-of-Regional-and-Ethnic-Inequalities-in-Malaysian-Poverty-Dynamics
http://hdl.handle.net/10986/36820
_version_ 1764485961656303616