Household Welfare Research Articles

DIAGNOSING POVERTY ERADICATION THROUGH LITERACY: ANALYSIS FROM NATIONAL SOCIOECONOMIC SURVEY NORTH SUMATERA PROVINCE

This study supposed to determine the factors that influence the poverty rate in North Sumatra Province. This study used cross sectional data from the North Sumatra Province Socio-Economic Survey 2023. This survey is a survey conducted by the Central Bureau of Statistics (BPS), which aims to collect data on the socio-economic conditions of the community related to the fields of education, health/nutrition, housing, socio-cultural activities, consumption/expenditure and household income, travel, and opinions on household welfare. household. The Socio-Economic Survey of North Sumatra Province 2023 survey data collected by BPS in March 2023 covered 33 regencies/cities in North Sumatra Province with 5000 sample households spread across 325 sub-districts and representing the entire population. The results of this study are literacy has a positive and significant effect on poverty in North Sumatra Province, financial literacy has a positive and significant effect on poverty in North Sumatra Province and age has a positive and significant effect on poverty in North Sumatra Province.

E-money, risk-sharing, and welfare

We develop a micro-founded monetary model to inquire the role of a privately provided e-money instrument for household consumption smoothing and welfare. Different from fiat money, e-money users pay electronic transaction fees, but in turn e-money reduces their spatial separation frictions and enables risk-sharing through remittance transfers. We characterize the profit maximizing e-money transaction fees charged by a monopolist technology provider and the optimality of price regulation. Calibrating the model for the context of Kenya’s e-money product M-Pesa shows that the introduction of M-Pesa through a monopolist increases aggregate welfare by 1.0%, while regulating e-money prices and fully eliminating the monopoly power of the technology provider raises the aggregate welfare only by 0.1% beyond what is achieved through the monopolist.

The Impact of the INC’s Rural Employment Scheme Initiatives on Economic Growth in Andhra Pradesh 2004-2009

This paper analyses the performance of the rural employment schemes initiated by the INC government in Andhra Pradesh during the period of 2004 to 2009. It explores the consequent effects on economic growth. The study focuses on four major initiatives: ; Pavala Vaddi Scheme, MGNREGA Scheme, Indira Kranthi Patham Scheme and Rajiv Yuva Shakthi Scheme. The main findings of this paper suggests that these policies have addressed many issues such as household welfare, improving rural infrastructure,youth infrastructure, women empowerment and reducing poverty. Hence, it is the objective of this paper to discuss the operation and results of these remunerative schemes and understand their role in, and impact on, the socio-economic development of the rural area of the state.

Impact of Forced Relocation and Community Integration on Household Well-being of Urban Refugees in Kenya

Forced displacement is a global issue that affects millions of people all over the world. Refugees are forced to flee their homes due to conflict, persecution, or other forms of violence. The majority of refugees often end up in urban areas, where they face numerous challenges, including social exclusion, limited access to basic services, and economic marginalization. This study examines the relationship between forced displacement, social cohesion, and household welfare outcomes of urban refugees in Kenya. The study utilized household data on urban refugees in Kenya sourced from the United Nations High Commission for Refugees (UNHCR), 2020 [85], and, the Kenya Continuous Household Survey (KCHS), 2019 [41]. The study estimates were regressed using the Ordinary Least Squares method and diagnostic tests were done to determine the accuracy of the estimates. The study found that an additional member in an urban refugee household led to an asset increment of 6.7%. The study further found that an additional habitable dwelling in an urban refugee household increased family assets by 71.9%. Utilization of mobile banking services, having nuclear members abroad, and participation in community-based organizations also had a positive impact on family asset accumulation in a refugee household. The study also found that utilization of mobile money transfer (M-PESA), negatively influenced family assets. This study contributes to the literature on Urban refugees as it gives insights into factors that can improve welfare and enhance social cohesion between refugees and host communities in Kenya. Gaps have also been identified in the mandate of UNHCR beyond the camps and the role of the Kenyan Government in urban housing programs for refugees.

Role of Women in Paddy Cultivation - A Study in Pakala Mandal, Tirupati District, Andhra Pradesh

Women make essential contributions to the agricultural and rural economies in all developing countries. Their roles vary considerably between and within regions and are changing rapidly in many parts of the world, where economic and social forces are transforming the agricultural sector. Rural women often manage complex households and pursue multiple livelihood strategies. Their activities typically include producing agricultural crops, tending animals, processing and preparing food, working for wages in agricultural or other rural enterprises, collecting fuel and water, engaging in trade and marketing, caring for family members and maintaining their homes. Many of these activities are not defined as economically active employment in national accounts but they are essential to the well-being of rural households. The paper presents the role of women in paddy cultivation in Pakala Mandal of Tirupati District of Andhra Pradesh.

Is economic growth less welfare enhancing in Africa? Evidence from the last forty years

On current trends, the future of global poverty reduction will be determined by Sub-Saharan Africa (SSA). Yet, poverty reduction has been relatively slow on the continent, even during periods of strong economic growth. The empirical literature has argued that this is due to the lower growth elasticity of poverty in SSA compared to other regions. This paper contributes to this debate by i) using an up-to-date and expanded sample of 575 successive and comparable growth spells between 1981 and 2021 and 2) unpacking the factors that contribute to the lower growth elasticity of poverty in SSA. First, the analysis confirms previous findings that economic growth (which we measure by growth in GDP per capita) has consistently been less poverty-reducing in SSA, even after controlling for initial differences in poverty, income levels, and inequality (and changes therein). Second, we find that the lower growth elasticity is due to a significantly lower passthrough between growth in GDP per capita and growth in household income or consumption as measured from surveys. GDP growth is particularly ineffective in improving the incomes of the poorest households, whose consumption expenditures in SSA are independent of economic growth, in contrast to low-income households elsewhere. Third, examining the factors that mediate the passthrough between GDP growth and household welfare, we find that limited provision of basic education services and basic infrastructure and the slow process of structural transformation inhibit the passthrough between economic growth and household welfare, as do dependence on natural resources and occurrence of violent conflicts. Overall, variables that strengthen (weaken) the effect of aggregate economic growth on household welfare are scarcer (more abundant) in SSA, which partly explains the weaker effect of economic growth on household welfare.

Foreign or Domestic Public Debt for Cameroon’s Development? An Externality Approach

Public debt plays a major role in financing projects that support economic growth and sustainable development. As governments may choose between domestic and external borrowing, a comprehensive assessment of their effects would support this choice. Our study provides an integrative view of economic and social outcomes and compares, through externalities, the impacts of external and domestic public debt as methods of financing development, with a focus on the Cameroonian economy. Utilizing a dynamic computable general equilibrium (CGE) model and a microsimulation analysis, we find that domestic debt has more advantages for Cameroon compared to external debt, as it increases the large-scale economic impact by improving household welfare, boosting GDP growth, and progressively reducing poverty and inequality. It is therefore recommended that the Cameroonian government focus on increasing the use of domestic debt as a method of financing development by implementing policies that support domestic saving and promote the development of domestic debt markets.

Poverty Impacts of the Pakistan Flood 2022

AbstractIn the summer of 2022, devastating floods hit Pakistan with a profound negative impact on lives and livelihoods. Apart from the irreconcilable loss of life, household welfare was negatively impacted through the loss of household income, loss of assets, and rising food prices. Yet, in the absence of just-in-time household survey data, evaluating the welfare impact is challenging, particularly in terms of estimating monetary poverty. This paper demonstrates how real-time satellite data, in combination with administrative data and historical household survey data, can be used to model the impact of floods on Pakistani households. In the context of data and time constraints, we present a practical methodology to simulate the expected impact of a natural disaster on monetary poverty from an ex-ante perspective. Estimates show that, as a direct consequence of the floods, the national poverty rate would increase by 4.0 to 4.3 percentage points, pushing around 9 million people below the national poverty line. Moreover, a spatially disaggregated analysis showed that the magnitude of shocks varied across locations and households depending on the intensity of the flooding and household characteristics. These estimates, which informed the Post Disaster Needs Assessment and were later used to frame the Donor Conference for Pakistan, provide an example of rapid modeling in the absence of real-time household survey data.

Calibration and validation of a national transport computable general equilibrium model for economic impact assessment

Infrastructure investments are being undertaken to improve efficiency, economic activity, and growth. Therefore, policy makers are increasingly looking for modelling tools that can evaluate the impact of transport infrastructure on the economy, firms and households from the lens of economic activity and equity. We have developed a large scale national CGE model for India that is calibrated to economic data as well as validated to data observed from the Indian Railways. The novelty of this work lies in three main areas (1) The CGE model incorporates multi-modal transport with road and rail (2) It is the largest model developed so far with 33 regions, 29 industries, 312,530 kms of highways and 126,366 km of Railways (3) Validation of the CGE model. The CGE model was able to predict the tonnage freighted on the Western Dedicated Freight Corridor to within 3.9 % accuracy. The Dedicated Freight Corridor Network (DFC) contributes a 2.94 % increase in the revenue for the railways as well as a 0.08 % increase in GDP. This implies that DFC can directly contribute INR 160 billion to the 2019 GDP. The CGE model distributed the benefits of faster and cheaper alternatives to the entire economy. This was observed during the evaluation of the road projects that were found to improve GDP, household welfare and rail revenue for rail, as well as improved equity.

Determinants of Food Security in Rural Households: An Analysis of Dietary Diversity, Land Ownership, and Socioeconomic Factors

Background: Food security is a critical issue in rural areas, influenced by various socioeconomic factors, dietary practices, and resource ownership. Understanding the determinants of food security can help in designing effective interventions to improve the well-being of rural households. Purpose: This study aims to identify and analyze the key determinants of food security among rural households, focusing on dietary diversity, land ownership, and other socioeconomic factors. Methods: The dataset used in this study includes variables such as gender, marital status, education, land ownership, food crop cultivation, meal frequency, age, food source, Food Security Index (FSI), and Household Dietary Diversity Score (HDDS). Multiple linear regression analysis was conducted to explore the relationships between these variables and the FSI. Additionally, a Random Forest Regressor model was employed to predict the FSI and to determine the importance of each feature. Results: The multiple linear regression analysis revealed that HDDS has a significant positive relationship with the FSI (p<0.001), indicating that higher dietary diversity is associated with higher food security levels. Other variables, such as education and food source, showed weaker correlations with food security. The Random Forest Regressor model achieved an R-squared value of 0.495, with feature importance analysis indicating that HDDS, food source, and age are the most influential factors in determining food security. The Mean Squared Error (MSE) of the model was 10.743. Conclusion: This research highlights the crucial role of dietary diversity and socioeconomic conditions in shaping food security outcomes in rural areas. The findings provide valuable insights for policymakers and stakeholders aiming to enhance food security and dietary quality in rural communities. Further studies are recommended to explore the complex interactions between these variables and to develop targeted interventions to improve food security.

Household welfare loss from energy price crisis: Evidence from China

The war in Ukraine and associated 2022 energy crisis had far-reaching effects. The energy price crisis causes varying degrees of households' welfare losses by directly increasing energy prices and indirectly increasing product costs along the supply chain. This impact is particular significant for developing countries and emerging economies with a large concentration of middle and low-income groups. In this study, we utilize a multiregional input-output (MRIO) model and micro-household consumption spending figures to simulate the effects of rising fuel costs, both directly and indirectly, on 24 expenditure segments in China. According to the energy prices schema, we find increased energy burdens deteriorate household welfare. In a dire scenario of a 50% increase in energy prices, 11.35% of households will fall into energy poverty because of a disproportionately high share of visible energy consumption, raising China's energy poverty rate from 11.61% to 22.96%. Residual impacts are passed on to households by raising the cost of producing goods, resulting in higher indirect energy consumption, and ultimately leading to a significant increase in the inequality of households' real incomes excluding energy consumption. Further analysis shows that it is more cost-effective to provide subsidies to relatively poor households for the consumption of various commodities, with subsidies for food, healthcare and medical services, and housing expenses being the most effective, than direct subsidization of energy prices by the government to reduce household welfare losses. The major findings of this study emphasize the impact of energy security challenges in household sector, that helps to assess the negative impact of the Russian-Ukrainian conflict on energy securities of emerging economies.

Beyond grassland degradation: Pathways to resilience for pastoralist households in alpine grassland ecosystems

Sustaining the development of rural and pastoral communities' hinges on livelihood resilience. Pastoralist household resilience relies on resource availability and decision-making abilities. Despite extensive studies on pastoralist livelihoods, a significant knowledge gap remains in understanding the nuanced adaptive capacities of diverse households, particularly amid grassland degradation. Thus, this study investigates the household-based livelihood resilience of pastoralists in China's Three-River Headwater Region, offering policy recommendations for resilient livelihoods. Using stratified random sampling, 758 pastoralist household heads underwent semi-structured interviews to collect data. Five household characteristics, encompassing age, gender, energy use, well-being perception, and multi-household grazing participation, were evaluated. Looking ot the nature of data, descriptive statistics and non-parametric tests were performed in this study to draw the valid inferences. The results revealed a positive correlation (p < 0.05) between household head age and livelihood resilience, with divergent resilience across age groups. Varied energy usage yielded distinct impacts; households employing solar or mixed energy sources exhibited heightened resilience (p < 0.05). Household well-being emerged as an invariant variable concerning resilience. Furthermore, engagement in multi-household grazing (an informal institution) significantly (p < 0.05) influenced pastoralist livelihood resilience. These insights advocate targeted support for young household heads and the adoption of clean energy. Exploring the deeper strategies and mechanisms of multi-household grazing can enhance understanding and policy integration, guiding eco-friendly progress within rustic landscapes for pastoral communities.

Assessing impacts of income diversification on Vietnamese household welfare using quantile regression and longitudinal data

ABSTRACT This study examines the heterogeneous and dynamic effects of income diversification on Vietnamese household welfare measured by total income and consumption expenditure. Based on a risk management perspective and prior studies, households with different income levels may have different income diversification strategies. In the analysis, we use quantile regression for both pooled and cross-sectional data across regions. The effects from Simpson’s diversity index, as the measure of income diversification, show mixed results. During the early period of study, income diversification raised the welfare of most households. However, the trend was reversed in the later period. This generates concern for low-income households and their income sources are less diversified. For higher-income households, the adverse effects are due to their focus on fewer economic activities, with wage earnings being their main source of income.

Impacts of buffer zone policy on household income: Evidence from Chitwan National Park, Nepal

Providing incentives to local communities to mitigate negative impacts of protected areas is an important component of conservation policy. Incentives may take various forms, including direct payments and income diversification training. For a case study of Chitwan National Park in Nepal, we evaluate the welfare effects of incentives delivered to buffer zone communities in the form of income diversification training. Evidence on the effect of such incentives on household welfare is limited. We evaluated the welfare effects in two ways. First, we measure the economic effects of living within the buffer zone, and second, we evaluate the effectiveness of two training interventions namely, income-generating training and tourism development training on increasing household income. We surveyed 728 households and used a quasi-experimental method (Propensity Score Matching). Results suggest that households living inside the buffer zone have 19 percent higher per capita household income than similar households living outside. Notably, income-generating training does not lead to an increase in household income, whereas tourism development training results in a substantial 52 percent growth. Our findings from Chitwan National Park suggest that conservation efforts do not necessarily adversely affect local communities. Interventions such as training programs can increase income, but are most effective when they allow households to take advantage of economic activities, such as tourism, linked to a protected area. This highlights the importance of crafting well-designed and targeted policy interventions that simultaneously enhance conservation goals and benefit local people.

Participation in livestock-based interventions and its impact on food security in Bangladesh: A quasi-experimental method

Livestock-based interventions play a critical role in enhancing food security in developing countries like Bangladesh, contributing to enhanced livestock productivity, improved household income, ensured food security, women's empowerment, livelihoods advancement, and positioning agriculture as a catalyst for economic growth. The study specifically examines the impact of the livestock and dairy development project (LDDP) intervention on food security in rural livestock farming households in Bangladesh. We gathered data, we are employing simple random sampling, and collecting 180 cross-sectional primary data from both LDDP participants and non-participants. Descriptive statistics, inferential statistics, and propensity score matching approaches were utilized to achieve our research objectives. Livestock farming households with LDDP participants exhibited higher food security, with beneficiaries surpassing non-participants by 52 % and 40 %, respectively. The mean per capita calorie intake for LDDP participant households was 1966.134 (Kcal), whereas non-participant households recorded 1762.130 (Kcal). The results demonstrate that LDDP intervention significantly and positively impacts food security, women's empowerment, household welfare, and income. These interventions have the potential to enhance nutrition and boost household income, thereby contributing to the stability of food security. Consequently, we recommended an expansion of LDDP intervention, encompassing less resourceful farmers with adequate logistical support. This study illustrates how employing propensity score matching method (PSM) and implementing the LDDP intervention can effectively improve food security in livestock farming households in Bangladesh.

Exploratory study for implementing a Global Burden of Animal Diseases case study in Senegal.

Senegal is a West African country with both extensive animal production systems, representative of the environmental, economic and animal health constraints specific to the Sahel region, and thriving commercial poultry and dairy production. An exploratory study was conducted in Senegal between 2021 and 2022 as a prelude to a case study of the Global Burden of Animal Diseases (GBADs) programme. An overview of existing animal production systems as well as the main priorities and issues in animal health on a national level was developed. A national workshop gathering representatives from the livestock production and academic sectors took place in Dakar in June 2022 with the objective of jointly developing a case study. The participants prioritised pastoralist production systems for cattle and agropastoral systems for small ruminants for the application of the GBADs programme. Through a series of activities, the participants highlighted the health, environmental, economic and socio-political challenges surrounding these systems, all of which limit their contribution to the well-being of pastoralist households, consumers and other stakeholders. While Senegal has in the past hosted a large number of research and cooperative projects on these two livestock systems, participants noted difficulties in obtaining, centralising and harmonising the existing data. This exploratory study led to the funding of a focused case study of the agropastoral small-ruminant sector that was carried out in 2023 in partnership with national and international organisations.

Dietary diversity and associated factors among households and children in internally displaced person camps in Southern Somalia: A cross-sectional study.

The study aimed to assess household and child dietary diversity in Southern Somalia by identifying determinants of adequate dietary diversity in three internally displaced person (IDP) camps in Baidoa, Dayniile and Dharkanley. A total of 1655 female main caregivers with 2370 children (6-59 months old) were included. Data on household dietary diversity score and child dietary diversity score indicators were collected from all households. The questionnaire was read face-to-face to the female main caregivers. Multivariate logistic regression analysis was performed to identify factors associated with adequate dietary diversity, which was defined as the consumption of at least four food groups within 24 h before the survey. The proportion of households achieving adequate HDDS was high in all locations 95.8%, 96.9% and 89.0% in Baidoa, Dharkanley and Dayniile, respectively, and the total adequate household dietary diversity score (AHDDS) was 95.6%. The proportion of adequate child dietary diversity score (ACDDS) was achieved in 63.5%, 8.5% and 38.3%. The main factors associated with AHDDS were larger household size, greater wealth, attendance of antenatal care (ANC) and joint decision-making between husband and wife, while factors associated with ACDDS included ANC attendance, age, the consumption of ready-to-use therapeutic food and deworming tablets. These findings can guide future programmes and policies aimed at improving maternal and child nutrition in IDP camps in Somalia. By tackling these diverse factors, a promising pathway emerges to enhance the nutritional welfare of both households and children in IDP camps.

The Development of Waste Bank Management to Improve Household Income in Surakarta City

Establishing a waste bank in Surakarta City is not only intended to manage household waste The waste bank can also serve to improve the community's economy. Since 2014, the Surakarta City Environmental Services (DLH) has been promoting the formation of waste banks. There were 123 waste banks recorded in Surakarta City until 2020; in 2021, only 70 remained. Furthermore, not all waste banks can run well. Therefore, this study examines how to develop waste bank management to improve household income in Surakarta City. This study used a descriptive method and Miles and Huberman analysis using 120 waste bank customers and 13 managers as respondents. The result showed that the waste bank contribution to the household income was IDR 26,461/month, which means that some aspects need improvements, such as human capacity, infrastructure and facilities, time management, economic incentives, and the program itself. This study provides recommendations on how to maintain and increase waste bank activities to enhance household welfare and environmental quality.

Road maintenance and local economic development: Evidence from Indonesia’s highways

This paper estimates the local welfare impacts of highway maintenance investments. We instrument road quality exploiting Indonesia’s two-step budgeting process for allocating funding to local road authorities. Using comprehensive data on road quality from 1990–2007, we find evidence that better roads help manufacturers create new jobs, enabling worker transitions out of informal employment, and increasing labor income. Road quality also changes the cost of living, reducing perishable food prices but also raising housing prices. We estimate the elasticity of household welfare with respect to road quality to be 0.1 and the benefit/cost ratio for road maintenance investments to be 2.3.

The nexus between internet use and consumption diversity of rural household

Exploring approaches to improve rural household well-being has always been an important task. This research investigates the effect of Internet use on rural household well-being measured by household consumption diversity, utilizing the 2016, 2018, and 2020 China Family Panel Studies survey data. To assess rural household consumption diversity, we employ the Simpson index and Shannon−Weaver index. To address the endogeneity of Internet use, we regress an instrumental variable-based two-stage least square (2SLS) method. The results show that Internet use substantially improves rural household consumption diversity. The disaggregated analysis suggests that low-income and small households in Central China benefit the most in consumption diversity improvement from using the Internet. Moreover, the mechanism analysis results show that household deposits and households’ beliefs about accessing commercial activities can positively mediate the relationship between Internet use and consumption diversity of rural household. Our findings provide new evidence for the literature on the role of Internet use in improving household consumption diversity in rural China.