Household Economic Well-being Research Articles

The Nutritional Implications of High Wheat Prices on Agriculture Households in Pakistan

This study analyzes the potential repercussions of high wheat prices on agriculture household economic and nutritional well-being in Pakistan. This task was accomplished by formulating a theoretical model to capture the economic behavior of agricultural households that produce marketable surpluses of wheat. For empirical verification, eight modules of nationally representative Household Integrated Economic Survey (HIES) were combined with approximate price levels to create a pooled cross-sectional sample of annual price-indices for household expenditure from 2000-01 to 2018-19. The study uses the Linear Approximate of Almost Ideal Demand System (LA-AIDS) model to derive demand elasticities and conduct a comparative static analysis. Finally, the model is extended to assess household nutritional well-being by linking price effects to calorie intake. The empirical findings demonstrated that high wheat prices resulted in high farm revenues for agricultural households. Although wheat consumption has declined, these households have used excess profits to diversify the food basket, which in turn led to an improvement in calorie intake. An indirect spillover effect from changes in wheat prices has also been observed, leading to an increase in demand for domestically produced commodities. Since the overall impact of wheat price increase on agricultural and non-agricultural households is mixed, it is proposed to pursue a careful food security policy to ensure the economic and nutritional well-being of the entire society. This study adopts a two-pronged approach of social to integrating social safety nets that does not hinder agricultural growth to achieve a mutually rewarding outcome.

The Nexus between Citizen Participation and Engagement in Elections and Development in Ghana: Empirical Evidence from Voters in Four Electorally-Swing Constituencies in Ghana

The Nexus between Citizen Participation and Engagement in Elections and Development in Ghana: Empirical Evidence from Voters in Four Electorally-Swing Constituencies in Ghana
 *Gbensuglo Alidu Bukari  
 Department of Political Science
 University for Development Studies, Tamale-Ghana
 E-mail: gbukari@uds.edu.gh
  
 Eliasu Mumuni
 Department of Communication, Innovation and Technology
 University for Development Studies, Tamale-Ghana
 Email: meliasu@uds.edu.gh
  
 Adam Osman Oscar
 Department of Logistics and Procurement Management
 Tamale Technical University, Tamale-Ghana
 oadamosman@tatu.edu.gh
  
 Abstract
 This paper establishes the relationship between individual citizens' voting participation in national elections and their felt socio-economic outcomes in Ghana. The paper adopts a micro-level approach and utilises data from a random sample of 600 respondents in four electorally-swing constituencies. The aim is to ascertain their views on a range of socio-economic issues related to elections and felt individual and community outcomes. The analysis of the results was conducted using standard multi-regression. The results of the analysis established that the relationship between individual and household economic welfare related to personal income, employment opportunities, personal and household educational opportunities and personal and household health status and voting participation is varied. The conclusion is that the unique circumstances of voter participation and choice in an election in the electorally-swing constituencies in the country are contingent on superior socio-economic policies of an incumbent government or political parties in electoral competition with the aspiration to win political power and dominance in a future electoral contest in Ghana. Therefore, based on the results, the enhancement of democracy through active participation in the political and electoral processes should place a premium on inclusive access of citizens to income, health, education and employment opportunities.
 Keywords: elections, democracy, participation, engagement, development, voting behaviour, Ghana
  

Impact of Financial Literacy on the Socio-Economic Well-being of People in Kaski District, Nepal

Financial literacy is considered one of the crucial factors influencing the attainment of the Sustainable Development Goals (SDGs). This paper examines how financial literacy affects social and economic well-being in Nepal’s Kaski District. The study follows descriptive and cross-sectional research designs. A sample of 385 households was selected for data collection. The head of each household was identified as the participant, and a survey questionnaire was used to collect the necessary data. Various statistical techniques, such as frequency distribution, exploratory factor analysis, and structural equation modelling, were used for data analysis. This study found that financial literacy positively influences both the social and economic well-being of households. Possessing the necessary knowledge and skills in financial matters enables individuals to meet their social and economic needs. The findings are very important for policymakers, educators, and stakeholders to enhance financial knowledge and skills and support the achievement of the Sustainable Development Goals.

The Effect of Natural Disasters and Extreme Weather on Household Location Choice and Economic Welfare

The Effect of Natural Disasters and Extreme Weather on Household Location Choice and Economic Welfare

Do women's working hours inputs yield higher household economic welfare than men's?

Time allocation, which encompasses various aspects of the labor market and the household sphere, is a key factor affecting both genders in the employment and household spheres. Using the data from China Family Panel Studies Survey (CFPS) of 2014, 2016 and 2018, the paper examines the impact of working hours input on household economic welfare. The research results indicate that women's working hours input significantly contributes to the household economy and passes a series of robustness tests; the positive effect of women's working hours input on the household economy is stronger than that of men using the household savings rate to measure household economic welfare; and there are increasing working hours input and enhancing household economic welfare through the mechanism of increasing household income. Theoretically, time allocation is placed within the logical framework of the household microcosm. It suggests that individual working hours influence household economic welfare. Practically, the research findings provide useful policy insights: raising workers' wage levels, narrowing the gender labor gap, and improving working time systems and work arrangements to promote the equal development of both genders in the employment and household spheres.

The association between material-psychological-behavioral framework of financial hardship and markers of inflammation: a cross-sectional study of the Midlife in the United States (MIDUS) Refresher cohort

BackgroundMeasures of financial hardship have been suggested to supplement traditional indicators of socioeconomic status (SES) to elucidate household economic well-being. This study formally tested the construct validity of financial hardship and examined its association with markers of inflammation.MethodsThis study utilized data from the Midlife Development in the United States Refresher Study (MIDUS-R; Age = 23-76, 53.7% female, 71% white). Participants were divided into exploratory factor analysis (EFA; completed SAQs only; N = 2,243) and confirmatory factor analysis sample (CFA; completed SAQs and biomarker assessment; N = 863). Analysis was divided into three steps. First, exploratory factor analysis (EFA) is used to examine if the three-domain factor (material, psychological, and behavioral) is the best fitting model for financial hardship measures. Second, we conducted CFA to test the hypothesized three-factor measurement model of financial hardship. Third, we tested the association between domains and the general latent factor of financial hardship and inflammation (interleukin 6/IL6, c-reactive protein/CRP, and fibrinogen).ResultsResults from EFA supported the three-domain model of financial hardship. The hypothesized three-domain measurement model fits well in a different sample within MIDUS-R. In the models adjusted for age and sex, higher material hardship was associated with elevated IL6, CRP, and fibrinogen, while higher behavioral hardship was associated with higher CRP. The association between the material domain and IL6 remained significant after adding body mass index, education, and race as additional covariates. The second-order financial hardship measurement model was associated with IL6, CRP, and fibrinogen, adjusted for age, sex, BMI, education, and race.ConclusionExplicating the socioeconomic environment to include indicators of financial hardship can help researchers better understand the pathway between SES and the inflammation process, which may help elucidate pathways between SES and age-related chronic diseases associated with inflammation.

The impact of wealth loss on household economic well-being in China—the case of over-quota birth fines

ABSTRACT This paper investigates the impact of wealth loss induced by over-quota birth fines on household economic well-being in China. We find that household labour supply adjusts to fertility fines primarily via the extensive margin of maternal labour supply, which is followed by higher savings rates and more remittances sent home. Fertility fines have no effects on non-food consumption; however, they significantly decrease food consumption. We propose two instrumental variables and placebo tests as identification strategies, all of which yield consistent results. Our study deepens the understanding of how households respond to over-quota birth fines and sheds light on responses to negative wealth shocks.

The misconceptions on MSE research in an emerging market economy: The role of household interference in Indonesia

This study examines the effect of household interference on business returns and household economic welfare of Micro and Small Enterprises (MSEs). This study employs a quantile regression method involving 7,020 households as the sample. The data are taken from the Indonesian Family Life Survey (IFLS) in two waves (2007 and 2014) to show the returns on microbusinesses. Variables such as unpaid workers, direct consumption of business revenue, and home-based businesses affect profits and household expenditures per capita. This study shows an overlap between MSEs and household business activities in emerging economies. This is contrary to most previous studies on MSEs that have separated businesses and households, thus MSEs’ performance could not be properly defined and analyzed. Besides, most Indonesian government policies and efforts only address business activities driven by opportunity, and few accommodate business activities driven by necessity. This research can provide clear evidence to policymakers who tend to adopt a “one size fits all” approach that returns to microbusinesses should be based on household welfare effects as well. This is because microbusinesses provide a livelihood and a means to address economic vulnerabilities, not simply taking advantage of an opportunity.

Socioeconomic and geospatial determinants of households’ food and non-food consumption dynamics within the West African Economic and Monetary Union

This article explores the cross-sectional properties of household's food and non-food consumption expenditures conceptualized as inter-dependent spatial random processes within the West African Economic and Monetary Union (WAEMU). To this end, the paper applies spatio-temporal econometric methods to data extracted from the first edition of the Harmonized Survey on Household Living Conditions (EHCVM, 2018/2019). The findings from the unconditional distribution of household economic wellbeing (measured by nominal per-capita food and non-food expenditures) using the inequality indicators of the Atkinson and Gini coefficients, suggest the presence of cross-sectional inequalities in household food and non-food wellness within WAEMU. However, food wellness inequality appeared lower than that of non-food wellness across the 8 countries. In addition, the economic security analysis, based on the indices of Watts, Sen, and Foster (aplha=1), highlight important spatial heterogeneity in household's vulnerability to poverty within-and-between WAEMU country members. Moreover, estimation of the semiparametric bivariate Gaussian copula model of food and non-food consumption expenditures, shows their significant dependence with household's demographic and geospatial characteristics, as well as the economic and health characteristics of the household head. Indeed, among other key findings, a gender based gradient in household's food and non-food wellness at respectively 3.6 and 4.4% is observed in favor of male headed households; along with an Urban/Rural divide in food and non-food wellness at 20.7% and 27.3%, respectively, in favor of urban households. Therefore, in line with goals 1, 2, 4, 5, 9 and 10 of the United Nations 2030 Agenda for sustainable development, the paper provides key insights for evidence based policy making within WAEMU.

Household Economic Welfare During the Rise of Mobile Phone Expansion in Indonesia

The proliferation of mobile phones in developing countries has significant implications for those countries. Although numerous studies have examined the various advantages of mobile phone use, the relationship between mobile phone access and the economic welfare of households has received comparatively little attention. This paper examines the effects of mobile phone on household expenditures in 2007 and 2014 utilising the Indonesian Family Life Survey (IFLS) combined with Potential Village Survey (PODES). Ordinary Least Square (OLS), Endogenous Treatment Regression (ETR), quantile regression, and two-way fixed effect estimations are used to identify the homogeneous and heterogeneous effects of mobile phone use. According to the estimated results, mobile phone access and signal quality significantly increases household expenditure. According to the results of quantile regression, mobile phone access has the greatest effect on the upper expenditure distributions. It is highlighting the importance of promoting a policy that increases mobile phone and the supporting infrastructure on the lower expenditure distributions.

Revealing Household Economic Welfare and Resilience

Revealing Household Economic Welfare and Resilience

The Nexus between Poverty, Inequality and Growth: A Case Study of Cameroon and Kenya

Abstract We conduct an in-depth analysis of the nexus between inequality of opportunity and inclusive growth in Cameroon and Kenya employing cross-sectional data collected over two time periods in each country. Empirical results show that changes in education, health and labour market endowments have large effects on household economic well-being, as proxied by total expenditures per adult equivalent. Employing the regression-based decomposition, we find that effort-based variables are associated with greater Gini inequality compared with circumstance-based variables—more so for Cameroon than Kenya. Among the effort-based variables, education in Cameroon and health in Kenya, are the main correlates of income inequality. The factual and counterfactual distribution analyses undertaken demonstrate that equalisation of human capital endowments is strongly inequality-reducing and further promotes pro-poor growth. Meanwhile, elimination of circumstance disparities in Cameroon reduces Gini inequality, enhances pro-poorness of the growth process, promotes shared-prosperity in urban areas and reduces inequality between the tails of the distribution of well-being. In Kenya, elimination of circumstance-based disparities is pro-poor improving, shared prosperity enhancing, but Gini inequality augmenting. In contrast to the Cameroonian case, equalisation of circumstances increases inequality between the tails of the distribution of well-being. The mechanisms behind these findings are probably the country-specific redistributive policies.

Livelihood Choice and Household Economic Wellbeing in Vietnam’s Northwest region

This paper examines factors affecting livelihood choices in the Northwest region, the country’s poorest one, populated mainly by ethnic minorities. We utilized secondary data from the Vietnam Household Living Standard Surveys (VHLSS) in 2016 and 2018, and applied micro-econometric analysis. Our cluster analysis results offer the initial classification into six livelihood groups characteristic of rural households. Bonferroni pairwise tests are used to compare per capita income and poverty rates across livelihood options. We discovered that households with nonfarm or formal wage-earning livelihoods had the highest levels of income and the lowest poverty rates, while those reliant on the cultivation of crops had the lowest income and the highest poverty levels. A multinomial logit model is used to explore factors affecting livelihood choice. We found that ownership of more cropland reduces the likelihood of choosing high-return livelihoods. Furthermore, household head education has a beneficial effect on the pursuit of profitable occupations, meaning that improved education could lead to households shifting away from low-return activities. We also discovered that households in communes with available transportation are more likely to adopt high-return livelihoods.

It pays to have guanxi: How social capital affects household income in China

AbstractThe association between social capital and household income has received inadequate attention over the past decade. We examine the role of social capital in household income using three waves of household surveys from 2011 to 2015 in China. Using “local big surname or not” as the instrumental variable, we find that gift expenditure as a proxy for social capital is positively associated with total household income. In addition, social capital mainly affects income sources through improved financial sophistication, higher job position levels, closer government connections, and greater accessibility to operating loans. The results are robust to alternative social capital measures. The findings highlight the importance of social capital in household economic welfare in China.

Management of Improving Household Economic Structure to Overcome Stunting

Background: The increase in stunting continues to occur in this world, including in Indonesia. the need for the cooperation of various interests to reduce stunting interventions. Various studies have shown that stunting is a lack of nutrition caused by a low household economic structure. Aim: This study aims to determine the management of improving household economic structure as an effort to overcome stunting with case studies conducted on stunted households in Kupang Regency, TTS Regency, and Manggarai Regency. Method: This study uses a qualitative method. Data obtained through documentation techniques. Findings: The results of this study indicate that the management of increasing the household economic structure must be carried out jointly and cannot be carried out by only one sector. Based on several studies, the cause of stunting is a lack of nutrition. Malnutrition is caused by a lack of household welfare, and household economic welfare is caused by low education. So that the main source is education which is still low. Thus, the management of improving the household economic structure needs to start with improving education in Kupang, TTS, and Manggarai districts.

Social Capital and Household Economic Welfare: Do Entrepreneurship, Financial and Digital Literacy Matter?

Alleviating household economic fragility and poverty is a global challenge in achieving a nation’s well-being. This study aims to examine the impact of social capital and Indonesian household economic welfare, as well as understand the mediating role of entrepreneurial, digital, and financial literacy. To address this objective, a structural equation modeling partial least square was adopted to acquire comprehend findings. The survey data were gathered from households in East Java of Indonesia using a simple random sampling approach. The findings from this study highlight that social capital significantly influences several literacies of households in Indonesia, including digital literacy, financial literacy, and entrepreneurial literacy. However, this study failed to confirm the nexus between social capital and household economic welfare. In addition, financial literacy, digital literacy, and entrepreneurial literacy all play an important role in mediating the connection between social capital and the economic welfare of households.

Scale and Sustainability: The Impact of a Women’s Self-Help Group Program on Household Economic Well-Being in India

Microfinance groups are a prominent source of small-scale rural credit in many developing countries. In India, evidence of the impact of the now ubiquitous women-only savings and credit self-help groups (SHGs) on household consumption and asset accumulation is inconclusive and based on small-scale interventions. Further, little is known about the sustainability of impacts at scale. We use panel data on close to 2500 households from five states in India to estimate the impact of SHG membership on household expenditure and asset ownership. Over four years, we find small but significant impacts of SHG membership on household expenditure and livestock ownership. Membership duration has a modest effect, suggesting that initial impacts may taper off as the program scales up, though small sample sizes limit our ability to draw inferences. Accompanying evidence on pathways is compelling; related work shows that SHG participation improves information, empowerment, and access to entitlements. While the direct impacts of SHG membership may not suffice to fill gaps in access to credit faced by the rural poor, impacts along these additional pathways could intensify the benefits of these groups.

Social class and income distribution

This paper aims to analyse the relationship between household income sources and household economic welfare over a medium-term period spanning different political-economic cycles in Argentina. It bases on the convergence between social class studies and welfare regimes analysis. We used a quantitative methodological strategy based on microdata from the Permanent Household Survey (EPH for its acronym in Spanish) of the National Institute of Statistics and Census (Indec for its acronym in Spanish), Argentina. The class scheme known as EGP/Casmin was constructed. The income sources for the different years were harmonised into labour and non-labour sources, differentiating the latter between market income and welfare income. The relationship between social class and income sources was analysed descriptively. A decomposition analysis by income sources and social class of the Gini economic inequality index was applied at the household level. Among the main conclusions of the paper, the strong dependence of households of all social classes on labour income for their social reproduction is highlighted, even in periods of strong dynamism in the field of social policies, such as the governments framed within the “progressive turn” or “pink tide”. 

Linking Internal Migration, Flow of Remittances and Household Wellbeing

Labor migration is usually considered as economically benefiting the household family members who are left behind through remittances. The extent of migration and remittances have shown significant growth however the empirical evidence on the casual impact of migration on economic status and wellbeing of those who are left behind is not well documented at the regional level in Pakistan. The study aimed to assess the impact of regional remittance flow on household economic status and wellbeing by using propensity score matching (PSM) technique. The first approach is to develop Multidimensional Poverty Index and second to show how pattern of inter and intra-provincial and regional remittances flow decreases the probability of poverty and affects the household wellbeing. For the analysis, the study utilized the nationally representative Pakistan Household Income and Expenditure Survey (HIES) 2013–2014. The results of the analysis lead to the conclusion that internal labor mobility occurs because of poverty, instead of benefitting the households who are left behind further had dragged them into risk of poverty. The poor individuals moving to urban or other areas in search of job opportunities had not been able to support themselves in new areas but also had failed to support their family back at home.

Is small beautiful? An empirical analysis of land characteristics and rural household income in Vietnam

Small and fragmented farmland parcels are widely believed to be major impediments to agricultural activities. In this study, instrumental variables models are constructed to estimate the influence of the farm size and the number of farmland plots on household welfare proxied by income and the asset index in Vietnam. The study exploits the panel data of households collected from the Vietnam Access to Resources Household Survey (VARHS) every second year in the period 2008–2014, capturing cultural, political and socioeconomic dimensions of rural Vietnam. A positive relationship was found between farm size and household economic welfare proxied by household per capita income and a household asset index; however, this relationship was negative for the number of land plots. The main conclusion from our analysis is that household welfare would be aided by land policies towards increasing the size of farmland and decreasing land fragmentation. However, our findings also indicate that to be effective, these land policies should be complemented by rural education, effective community development and encouragement of non‐farm employment activities.