Improve Household Welfare Research Articles

On the impact of provincial development policies in South Africa

ABSTRACT Although South Africa is one of the biggest economies in Africa, poverty and income inequality persist and a vast number of households lack access to water and sanitation services. Provincial governments have implemented the Provincial Development and Growth Strategy to improve standards. We evaluate its effects on selected development indicators. Using a generalisation of the Difference-in-Differences method, we study the effects on four development indicators: food security, economic well-being, and water and sanitation security. We use secondary data from the General Household Survey, collected between 2002 and 2017 and conclude that (i) the policies improve development indicators; (ii) the effects are heterogeneous across racial and geographic distributions of households. Long-term economic stimulators, such as employment opportunities and education for vulnerable communities, are needed to improve household welfare across the provinces. Programmes emanating from these development policies should be ongoing and continuously adapted to fulfil the specific needs of the local groups.

MIGRASI DAN KESEJAHTERAAN RUMAH TANGGA PETANI

Farmer’s households often carry out migration activities as a form of livelihood strategy. The remittances generated are expected to impact improving the welfare of farmer households. This study aimed to analyze changes in the welfare of farmer households due to the migration carried out. This study uses panel data from the Indonesia Family Life Survey (IFLS) wave 4 (in 2007) and wave 5 (in 2014). The unit of analysis of this study is a farmer’s household in West Java Province, whose one or all of their family members migrated between 2007-2014. Data were analyzed using descriptive statistics to see changes in welfare levels before and after migration. The results showed that the migration carried out by farmers impacted changes in the level of welfare both objectively and subjectively. The increase in asset ownership and respondents' perceptions of welfare indicators tend to be higher after they migrate. Assistance to migrant households needs to be carried out so that the remittances produced can be used optimally to improve household welfare.

Impact of livelihood strategies and capitals on rangeland sustainability and nomads' poverty: A counterfactual analysis in Southwest Iran

Traditional ranching farming provides society with meat, agricultural products, leather, and hides in an economic procedure through livestock grazing on rangelands. Based on recent research, traditional ranching farming has a crucial role and a significant contribution to the employment of nomadic households. According to recent rangeland degradation, it is important to pay attention to the nomadic livelihoods based on the rangeland environment and the household economy. Global implications for the study of pastoral livelihoods are based on maintaining rangelands and improving household welfare (in terms of earnings). For this purpose, a sustainable livelihood framework based on livelihood strategies and natural and unnatural capitals was applied. The sample size of 393 households from 24 nomadic residences was selected based on the multi-stage cluster sampling method. Data were collected in the form of face-to-face interviews with sample nomads in 2018. The results of switching regression models for analyzing the counterfactual effect indicated that nomadic households who adopted servicing, agriculture, and diversification strategies caused the improvement of rangeland sustainability at 3%, 7%, and 4% and the reduction of household poverty at 4%, 7%, and 5%, respectively. In this regard, increasing human capital and financial capital have significant effects on rejecting ranching strategies and selecting agriculture and diversification strategies.

Migration, remittances and household welfare: evidence from Sri Lanka

This study attempts to determine the effect of migration and remittances on household welfare in Sri Lanka by using a nationally representative data set collected by the Department of Census and Statistics of Sri Lanka in 2016. As the households that receive remittances are systematically different from those that do not receive remittances, the paper employs the Propensity Score Matching (PSM) technique to avoid any selectivity bias arising from this non-randomness. An aggregate asset index and per capita expenditure were used as welfare measures. Results suggest that household head characteristics, human capital variables and regional characteristics are the main determinants of receiving local and international remittances. Principle Component Analysis (PCA) and factor score analysis suggest that asset indices for productive and consumer assets of international remittance-receiving households are higher than that of the local remittance-receiving households with similar assets. The results of the OLS regression suggest that local and international remittances-receiving households gain higher welfare in terms of the asset index and per capita expenditure. International remittances tend to have a more substantial effect on the welfare of households in Sri Lanka. This study concludes that remittances improve household welfare and recommends that migration should be promoted further.

Pelatihan Pembuatan Pola Celana Santai Bagi Masyarakat Kelurahan Muaragembong Kabupaten Bekasi

The scope of pengabdian kepada Masyarakat (PkM) field includes the development of the welfaresector and the development of the potential of the creative industry. Activities in the PkM program carriedout by lecturers must be in accordance with the real problems and needs of the community in the PkMlocation. Skills training for making casual pants patterns is a PkM activity carried out by a lecturer inFashion Design, Faculty of Engineering, State University of Jakarta. This activity aims to provide thecommunity with knowledge and skills in making pants patterns. The community members who participatedin the skills training for making casual pants were residents of the Muaragembong sub-district, BekasiRegency. The method used in the implementation of PkM activities begins with a site survey, followed bytraining in making casual pants patterns, participants are given a module for making casual pants patterns,lecturers explain learning materials using the lecture method and demonstrate the steps for making casualpants patterns, then lecturers and students provide guidance to participants in the practice of making casualpants patterns. The involvement of students in PkM activities is so that students have a spirit of communityservice by contributing their expertise and caring about the conditions that are happening in the community.The result of PkM activities is that participants have skills in making casual pants patterns that can be sold toincrease income and can improve household welfare.

Housing Taxation and Economic Growth: Analysis of a Balanced-Growth Model with Residential Capital

Abstract Using a neoclassical model with endogenous growth, this study examines the effects of increasing housing taxation and eliminating the mortgage interest tax deduction on economic growth and household welfare in the United States. The optimal tax policy reduces taxation of income in favor of increased taxation of housing and consumption. This policy increases the growth rate by 0.49 percentage points. In addition, simply shifting the tax burden by reducing the tax rates on productive forms of capital toward housing can increase the growth rate up to 0.18 percentage points. This study also find that eliminating the income tax deduction on mortgage interest and lowering income taxes would increase growth by about 0.016 percentage points. Each of these proposed policies improves household welfare.

Has the Targeted Poverty Alleviation program improved household welfare in rural China?

China's government launched the Targeted Poverty Alleviation (TPA) program in 2015 as a part of a multipronged framework to lift every Chinese above the national poverty line by 2020. This study is devoted to examining the effects of the TPA program on household welfare indicators. To this end, the China Family Panel Studies data for the period 2010–2018 are analyzed. The propensity score matching and difference-in-difference (PSM-DID) method is employed to address the sample selection bias and endogeneity inherent in program participation. The results show that TPA program participants earn significantly higher incomes than non-participants. However, the program's effect on consumption expenditure is insignificant, suggesting that the program has contributed to lifting people out of poverty mainly by increasing incomes. Furthermore, even though the program seeks to deliver precisely targeted interventions, it is more effective in some regions than in others. Removing regional disparities is an area of opportunity for improving the efficacy of the TPA program.

Should monetary policy target financial stability?

Monetary policy can promote financial stability and improve household welfare. We consider a macro model with a financial sector in which banks do not actively issue equity, output and growth depend on the aggregate level of bank equity, and equilibrium is inefficient. Monetary policy rules responding to the financial sector are ex-ante stabilizing because their effects on risk premia decrease the likelihood of crises and boost leverage during downturns. Stability gains from monetary policy increase welfare whenever macroprudential policy is poorly targeted. If macroprudential policy is sufficiently well-targeted to promote financial stability, then monetary policy should not target financial stability.

Gender differentials in value addition and lean season market participation in the grasshopper value chain in Uganda

AbstractGender gaps in agrifood value chains are manifested in differential access to and control of productive resources, upgrading activities, market participation, farm productivity and food security among women and men. These gender gaps threaten economic development in sub‐Saharan Africa. With low‐resource requirements, edible insects have emerged as a promising agrifood value chain with income opportunities for women and men. However, it is not clear how gender gaps are manifested in the participation in value addition and lean season market of the edible insect value chain with a potential to improve household welfare. In this paper, we analyse the gender gaps of retailers' participation in value addition and lean season market in the grasshopper value chain in Uganda. Multivariate probit and tobit models are used in the empirical analyses. We find that women are 15% more likely to participate in primary value addition. However, there are no gender gaps in the participation in secondary value addition and the lean season market. The study also shows that grasshopper business is an important source of income for many retailers. Therefore, the development of the grasshopper value chain, especially the aspects of value addition and lean season market, could contribute to gender equality and improvement of livelihoods of women and men.

Assessing the impact of social grants on household welfare using propensity score matching approach

Purpose This study aims to investigate the impact of social grants on rural household welfare in a village located in one of the poorest provinces in South Africa – KwaZulu Natal Province. Actually, since the inception of democratic rule, the South African government has turned to social grants to address the issues of poverty, income inequality and to improve household welfare. The coverage of social grants has increased substantially with more than 17 million (about 34% of the population) South Africans being recipients of social grants. Despite having relatively well-developed social security system, poverty levels in rural parts of South Africa remains very high. Design/methodology/approach This study uses a cross-sectional households survey data conducted in Hlokozi village. A propensity score matching technique, which accounts for non-random selection of households, is applied. Findings The results reveal that social grants have a significant and positive impact on rural household welfare. Specifically, the nearest neighbour matching estimates suggest that the causal effect for social grants on household welfare is the region of about R5,830. Consistent with the nearest neighbouring method, the results obtained using the Kernel matching method show that social grants are significant in improving rural household welfare. Originality/value While there are a number of studies that have shed some light on how social grant reduces poverty in South Africa, there are some gaps. Firstly, only a few studies have interrogated the impact of social grants on household welfare. Secondly, most of these studies have relied on descriptive analysis, and finally, besides poverty being high in rural areas, research on the impact of social grants on rural household welfare remains thin.

Public expenditure for water facility and road transport infrastructure in Ethiopia: a comparison of impacts using an economy-wide model

BackgroundEthiopian government is investing in a wide range of pro-poor sectors but the economic effects of public investment widely vary across sectors. With a limited public resource, public investment across sectors has to be prioritized based on their potential socio-economic contributions and/or economy-wide benefits. Therefore, the objective of this study is to compare and explore the economy-wide returns of public expenditure on water facility and energy technology (such as improved cooking stoves) on the one hand and public expenditure on road infrastructure on the other hand.MethodsThe source of data for this study is the 2005/06 updated Social accounting matrix (SAM) of Ethiopia. The analysis applies the STAGE Computable General Equilibrium (CGE) model developed by McDonald (2007). This study analyses two policy scenarios; the first scenario is an increase in the total factor productivity (TFP) of water fetching and firewood collection activities due to public investment in water facility and improved cooking stoves and the second scenario is a decrease in the trade and transport margins due to public investment in road transport infrastructure. For ensuring the comparability of the return of public expenditure, the same amount of public capital is invested in both scenarios.ResultsThe simulation outcome indicates that public investment in water facility and improved stoves results relatively higher domestic production in most sectors, larger household consumption, improved household welfare and improve in the major macroeconomic indicators (GDP, absorption, private consumption, and total domestic production) as compared to public investment in road transport infrastructure.ConclusionsIt is conducive to explore the potential economic contribution of public expenditure across the different pro-poor sectors before launching public investment in any specific sector. This will ensure limited public budgets are appropriately invested in the sector that can bring relatively highest economic-wide benefits to the wider society.

The Impact of Community-Based Health Insurance on Household's Welfare in Chilga District, Amhara Regional State, Ethiopia.

Household welfare is depleted by catastrophic health expenditure by forcing families to reduce the consumption of necessary goods and services, underutilization of health services, and of finally falling into the poverty trap. To mitigate such problem, the Government of Ethiopia launched CBHI schemes. Therefore, this study investigates the household welfare impact of Community based health insurance (CBHI) in the Chilga district. A multi-stage sampling technique was used to select 531 households (of which 356 were treated and 175 control groups). Probit and propensity score matching (PSM) were used to analyze the data. Probit model revealed the following: Level of education, access to credit, chronic disease, insurance premium, awareness, distance to health service, and health service waiting time are significant determinates for being insured in CBHI. The PSM method revealed that the insured households associated with visits increased by 2.6 times, reduced per-capita health expenditure by 17–14% points, increased the per-capita consumption of non-food items by 12–14% points, increased the per-capita consumption of food items by 12–13% points in a given matching algorithm compared to the counterparts. Therefore, CBHI has enhanced service utilization by reducing per-capita health expenditure and increasing consumption per-capita, in general, it improved household welfare. To this end, the results of this study suggested that the government (ministry of health) and concerned bodies (such as NGOs) should extend the coverage and accessibility of CBHI schemes, create aware to the society about CBHI, and subsidize premium costs of the poor.

Does microcredit for water and sanitation improve household welfare? Evidence from Indonesia

AbstractThe water supply and sanitation (WSS) sector requires large household investments and expenditure. Microfinance provides an alternative financing scheme to support in reaching universal access to WSS to improve public health and well-being. Using propensity score matching to Water.org's household survey data, combined with the Village Potential's village statistics, this study aims to evaluate the impact of microcredit devoted to improvements in water and sanitation facilities towards household welfare measured by the WSS Joint Monitoring Programme (JMP) ladder status, income, and the share of health expenditure. Due to data availability limitations, the results indicated an associative relationship, as opposed to a causality relationship, between WSS microcredit participation and the respective outcomes. Participation in WSS microcredit was significantly associated with a higher JMP ladder for sanitation access but not with a JMP ladder for water access. Moreover, borrowers’ participation in WSS microcredit was associated with a significantly higher monthly income and a significantly lower proportion of health expenditure. Future evaluation studies of WSS microcredit should focus on improving data collection or conducting randomized control trials. For ensuring better practices, microfinance institutions (MFIs) should conduct stringent monitoring on fund usage to assure households benefit from the expected outcomes of WSS improvements.

Can Urbanisation Improve Household Welfare? Evidence From Ethiopia

AbstractDespite evolving evidence that Africa is experiencing urbanisation in a different way, empirical evaluations of the welfare implications of urban-development programs in Africa remain scant. We investigate the welfare implications of recent urbanisation processes in Ethiopia using household-level longitudinal data and satellite-based nightlight intensity. We also examine the impact of urban growth on the composition of household consumption and welfare. We employ temporal and spatial variations in nightlight intensity to capture urban expansion and growth. Controlling for time-invariant unobserved heterogeneity across individuals and localities, we find that urbanisation, as measured by nightlight intensity, is associated with significant welfare improvement. We find that tripling existing average nightlight intensity in a village is associated with a 42–46% improvement in household welfare. Urbanisation is also associated with a significant increase in the share of non-food consumption, which is a good measure of overall welfare and poverty. In addition, we find significant heterogeneity in urban expansion across major towns and small towns. Urban expansion in rural areas and small towns appears more impactful than similar expansion in major cities. Finally, quantile regression results suggest that better-off households are likely to benefit more from urban expansion, which may translate into higher inequality across households or communities. Our results can inform public policy debates on the consequences and implications of urban expansion in Africa.

Grassland Ecological Subsidy Policy and Livestock Reduction Behavior: A Case Study of Herdsmen in Northern China

There has been a limited understanding of herdsmen's livestock reduction behavior (positive vs. negative) as an evaluation index of the successful implementation of the grassland subsidy and reward policy in Inner Mongolia (IM). In remedy, we investigated herdsmen livestock reduction behavior and the strategies involved based on the survey data obtained from 844 herdsmen in 15 banners (counties) across the grassland types in IM using a sample t-test and Binary Logit model. We found that herdsmen with lower total cash income, fewer livestock resources, lower nonhusbandry income, and those living farther away from the city complied with the policy directive by reducing livestock numbers. More herdsmen in the desert region (38.42%) decline stock size than other grassland types. Herdsmen of Han origin were more inclined to reduce livestock numbers than the Mongolia or Manzu group. There is a need to improve the incentives of the subsidy and reward program, incorporate technical managerial skills to educate herders on the merit of focusing on production per head of animals as collateral for livestock reduction to raise herdsmen income, and foster better grassland ecological environment. In addition, herdsmen who comply with the policy directive should be identified and offered more prosperous support, such as market information and better feeding strategies to promote the sustainability of their livelihood and the grassland ecosystem. It is suggested that the top-down approach of implementing the subsidy and reward policy in IM should be reversed for improved household welfare, compliance with policy directives, and sustainable pastoral development.

Microfinance and poverty reduction: Evidence from Djibouti

AbstractDoes access to microfinance improve household welfare? We seek the answer to this question using data on 2,060 borrower and nonborrower households based in six major urban centers of Djibouti. We construct a composite index of multidimensional poverty that captures various aspects of household well‐being, including ownership of agricultural and livestock assets, land, transportation, employment, quality of housing, and sanitation facilities. We carry out estimations using an instrumental variable–based empirical strategy and a number of econometric techniques. Our results show that neither access to microcredit nor its ostensibly productive use is significantly associated with poverty regardless of the duration of time since the loan was acquired. This holds for both access to and the amount of microcredit obtained. The results are robust across specifications and econometric techniques employed. The lack of significant beneficial effect of microfinance found in the study adds to the growing literature questioning the effectiveness of microfinance as a tool for poverty alleviation. The findings raise doubts on the usefulness of Djibouti's microfinance program.

Can unconditional cash assistance improve household welfare? QUAIDS model for food commodities in Indonesia

ABSTRACT Expenditure patterns can be taken into consideration in determining the type of government assistance. Without adequate information on household expenditure patterns, cash transfers may not be effective in improving welfare. This study aims to examine the expenditure patterns of households receiving cash assistance in Indonesia. The expenditure pattern is estimated using the Quadratic Almost Ideal Demand System (QUAIDS). Four groups of expenditure types for food were examined: rice, staple food, beverages, tobacco and alcoholic beverages. The result showed that the largest predicted expenditure is for the purchase of staple food. Income elasticity for staple food is relatively highest than all other types of food. On the other hand, the price elasticity of tobacco and alcoholic beverages is relatively inelastic (lowest) compared to other food products. These results indicate that the provision of cash transfers for poor households has the potential to increase household welfare through increasing staple food consumption.

Impact of Public Investment on Small-Scale Irrigation and the Welfare of Farmer Households in the Saline Zone in West Bengal, India

Irrigation plays an important role in improving smallholder agricultural production and/or productivity, household food security and rural poverty reduction in the developing countries. The objective of this study is to assess the impact of irrigation access on household welfare (measured in terms of household expenditure) in the saline zone in West Bengal, India. A total of 440 farming households were interviewed and the data were analysed using the Propensity Score Matching (PSM) method. The study results indicated that irrigation access has a significant positive impact on improving household welfare The paper concludes that the government’s investment on the renovation of water bodies is justified. The paper suggests for complementary support services and rural development projects for reduction of rural poverty.

Impact of Financial Inclusion on Household Welfare in Nigeria

Although improving household welfare is essential to the attainment of numerous United Nations Sustainable Development Goals (SDGs), developing countries such as Nigeria has continued to make negligible progress in enhancing household welfare and boosting prosperity with majority of her population still struggling to attain a minimum standard of living. Policy makers has suggested that financial inclusion could be a panacea for welfare improvement. This study examined the impact of financial inclusion on household welfare using Findex 2017 data. The study is a Quantitative research. It made use of quasi experimental research design. The target population are households from 15 years and above. The study performing a counterfactual analysis using propensity score matching technique found that financial inclusion has a positive significant impact on household welfare. The study recommended among others that to achieve increased financial inclusion for all, government, regulatory agencies, financial service providers need to concentrate on improving the existing framework for branchless banking so that individuals can get these financial services without having to go to a physical bank.

Contributions of savings and small loans made in Iringa Hope Joint SACCOs towards improving household welfare in Iringa region in Tanzania

This study evaluates the small loans and regular savings deposits by members of Iringa Hope Joint SACCOs (IHJS) towards improving household welfare in Iringa region in Tanzania. Primary data were collected using a questionnaire from 170 SACCO members. The sample was chosen from each SACCO using a simple random sampling technique. The analysis was performed using Statistical Package for Social Science (SPSS ver. 20, IBM, USA). The results revealed that Iringa Hope Joint SACCOs household welfare in Iringa region is improving due to increased household income, decision making, and capacity building that influences regular savings deposits by members. Furthermore, the study also revealed that employment has been increasing due to SACCOs’ financial access and it becomes sustainable as income increases. Therefore, IHJS should consider offering financial services at low interest rates to enable poorer smallholder farmers and small businesses to access finance. It should continue supporting the SACCOs' members with training to enable them to improve governance and performance of financial services.