ECN 503 Lecture Notes - Lecture 5: Poverty Trap

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Small village in indonesia in summer 2008: his eldest child (13) is working as a construction worker (dropped out of school), has two more children living with their grandparents, wife works as a live in mad, house has no furniture, no water or no electricity, doesn"t have land, since his parents land was divided into many pieces for his 13 siblings to build homes on, worked as a farmer laborer. Solhin couldn"t accept the lower wage over losing his job since food prices went up too thus not allowing him to have enough strength for the whole day to work: cannot work construction since he"s too weak for a basic job, not skilled for better jobs, and too old to be an apprentice, no money to feed his family, so his wife and eldest child went to city, however still not enough money.

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