Poverty Unemployment LITERATURE REVIEW

II. LITERATURE REVIEW

2.1. Poverty

In general poverty is the state of being without the necessities of daily living, often associated with need, hardship and lack of resources across a wide range of circumstances. A person living in the condition of poverty is said to be poor or impoverished The Free Dictionary. There are also several definitions on Poverty made by the NGOs and GoI Institutions. According to the Central Bureau of Statistics CBS a household is categorized as poor if they have an income per capita below the poverty line. The poverty line is a measure of the amount of money a government or a society believes is necessary for a person to live at a minimum level of subsistence or standard of living. Meanwhile, The World Bank defines extreme poverty as a person living on less than US 1 per day, and moderate poverty as a person living less than US 2 a day. Pre-prosperous family Keluarga Pra Sejahtera is a family that is unable to fulfil a minimum of basic human needs including spiritual needs, food, clothes, home, education and health. Prosperous family 1 Keluarga Sejahtera I is a family that is already able to fulfil its basic human needs, but unable to fulfil higher human needs BKKBN 2004.

2.2. Unemployment

Unemployment occur when a person is available to work and seeking work but currently without work. The prevalence of unemployment is usually measured using the proportion of unemployed people, which is defined as the percentage of those in the labour force who are unemployed. The proportion of unemployed people is also used in economic studies and economic indices Wikipedia 2009. In seven years between 1994 and 2001, CBS changed its definition of open unemployment twice. First, in 1994, CBS removed the qualifying time period of actively seeking work. Prior to 1994, a person was considered to be actively looking for work if she had actually looked for work during the week preceding the survey. Starting from 1994, a person is considered to be actively looking for work if she had looked for work, regardless of when the last time she actually actively looked for work, as long as she is still waiting for the result of the job search. In 2001, CBS altered the definition of unemployment to include three more groups of the unemployed on top of the traditionally measured-unemployed, which is defined as part of the labour force who are not working and actively looking for work. The three additional groups of unemployed people are: i those who are not working and are not actively looking for work because they do not believe work is available discouraged workers, ii those who already have jobs but have not started working, and iii those who are preparing a business. Prior to 2001, these groups of people would be considered out of the labour force, hence not included in the calculation of proportion of unemployed people. The first group makes up the majority of the additional persons considered unemployed under this new definition of open unemployment Semeru 2005.

2.3. Food Scarcity