Living Standards Measurement Research Articles

Does digital finance improve welfare effects of maize farmers’ productivity gains?

PurposeIn Burkina Faso, maize is a key component in farm households’ food security and welfare. However, maize productivity in the country is low and productivity improvements do not necessarily result in better living conditions. This paper aims to establish linkages between maize productivity and welfare by considering the context of digital finance adoption for farmers in Burkina Faso.Design/methodology/approachFor this purpose, we use an endogenous switching regression approach on the Burkina Faso’s Living Standard Measurement Survey of 2018.FindingsOur estimates show that digital finance adoption enhances the transmission of productivity gains to farm households’ welfare, with the welfare elasticity of maize productivity almost twice higher for digital finance adopters.Social implicationsOur findings highlight the importance of increasing the access to digital finance to improve farm household welfare.Originality/valueThis manuscript makes the valuable contribution of analysing the heterogeneity of the transmission of agricultural productivity to welfare, with a focus on the identification of the role of digital finance.Peer reviewThe peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-01-2024-0077

Clean Energy Adoption in Developing Countries: New Evidence of the Relevance of Risk Aversion and Education

Cooking with relatively clean fuel has numerous benefits, including reducing pollution and improving health and socioeconomic outcomes. Hence, some developing countries have implemented policies to promote LPG use. However, risks of accidents and explosions may prevent risk-averse households from adopting LPG. This study examines the causal effect of risk aversion on the adoption and expenditure of LPG using the seventh round of the Ghana Living Standards Measurement Survey and a double hurdle approach. We find that risk-averse households are four per cent less likely to adopt LPG and, if adopted, spend significantly less on LPG. The result holds even after endogeneity has been addressed with diverse econometric strategies. However, the effect disappears in households where the primary decision-makers have no formal education, while it is systematically stronger when they are educated. The results imply measures that reduce the actual and perceived dangers of LPG usage could effectively increase adoption rates.

A microsimulation study of COVID-19‘s impact on household welfare in Ethiopia

ABSTRACT Our study aims to analyze and learn from the unanticipated economic shocks caused by the COVID-19 pandemic. We examine the ramifications of the pandemic on household well-being in Ethiopia, uncovering the layers of socio-economic impact through a rigorous microsimulation exercise. Drawing on robust data from the 2018/19 Living Standards Measurement Study – Integrated Surveys on Agriculture, we assess the significant disruptions caused by the pandemic. Our findings reveal a 2 to 4 percentage point increase in the poverty rate within the first three months, driven largely by shifts in direct incomes and food prices. The analysis highlights differential impacts across rural and urban areas, as well as between male- and female-headed households. Moreover, the study underscores the vital role of social protection programs in mitigating the effects of such shocks.

Too rare to dare? Leveraging household surveys to boost research on climate migration

Abstract Nationally representative household surveys are a potential data source that could shed light on the climate–migration nexus. However, they are rarely designed specifically to measure or study migration and often lack the necessary features to identify connections with climate change. This paper offers a critical reflection on current challenges faced by multi-topic household surveys in responding to these needs while also highlighting the many opportunities embedded in their use. Using the Living Standards Measurement Study household survey programme of the World Bank as an example, this paper proposes a methodological agenda and practical guidance to address data gaps and advance research on climate migration.

Effect of Non-Farm Income on Income Inequality in Pakistan

The portion of farm households' income outside the farm, such as non-farm salaries and wages, pensions, and interest income, is referred to as non-farm income. In Pakistan, non-farm profit is an essential source of income. "income inequality" describes the inequitable income distribution between people or families in a community or economy. Income inequality is a significant issue worldwide, including in Pakistan. This research estimated the effect of non-farm income on rural and urban areas and analyzed the relationship between non-farm income and income inequality within households. Secondary data from the Pakistan Social and Living Standard Measurement Survey Household data (2019-20) was used. Multinomial Logistic Regression was applied to the data, and income inequality was calculated using the Gini coefficient. The population was divided into quartiles to measure income distribution. The research found that non-farm income raises income inequality, while farm income is an income equalizer among the population. The reason behind this is that a major portion of income or wealth is accessed by the upper society, with only a minor portion reaching the lower levels of the population. Specifically, the Gini coefficient for non-farm income was 0.65, indicating higher inequality, compared to 0.45 for farm income. In urban areas, non-farm income provides large opportunities, while rural areas predominantly depend on the farm sector. There is a need to raise awareness about the non-farm sector in rural sector. The study's policy implications include the following: In order to improve agricultural households' income and low-income disparity, non-farm income activities have to be promoted. The study also suggests that Inequalities within rural communities should be addressed as part of an equal development strategy, in addition to the rural-urban gap.

Gender wage gap and child malnutrition in Ethiopia: A probit instrumental variable method

Objective: Child malnutrition is a widespread concern in Sub-Saharan Africa. Previous studies mainly focus on the association between women's employment status and child malnutrition, however, the aim of this study is to examine the causal effect of household gender wage gap on child malnutrition in Ethiopia.Methods: This study relies on a data set consisting of 2066 children under 5 years of age using 2018/19 Living Standards Measurement Study data for Ethiopia. A probit instrumental variable (IV) method is applied to determine the causal effect.Results: Persistent gender wage gap of approximately 35% has been observed across various sectors in Ethiopia. Estimated results show that the decrease in household gender wage gap significantly enhances child growth outcomes, especially for younger girls and children in households with limited access to market. Specifically, one percentage point increase in gender wage gap is associated with a 0.74% (p<0.05) increase in the probability of stunting and a 0.42% (p<0.05) increase in the likelihood of wasting. Three mechanisms have been identified as contributing factors: more allocation of health resources to children, improved dietary diversity in the household, and increased household income.Conclusions: Policy interventions aiming at improving the children nutrition status in Ethiopia are expected to narrow down gender wage inequality accordingly. Further research is needed to explore the association using reliable and large-scale data source in other countries.

Disability and its consequence on consumption: evidence from Ethiopian households

ABSTRACT This paper examines the prevalence of disability and its effect on non-health consumption using the World Bank’s Living Standards Measurement Study two-year panel data consisting of 4954 Ethiopian households. The fixed effects model is estimated to analyze the impact of disability on consumption. The disability prevalence rate is as large as 26% of surveyed households. The results show that disability of any degree of severity in any of the six functional domains affects all non-health consumption items except for food while disability coming from a severe degree of difficulty has a larger adverse effect on household consumption of all items, implying both short-run and long-run effects. Comparatively, disability highly hits households from rural areas.

Input Subsidies and Women Entrepreneurship: Evidence from Tanzania

ABSTRACT In many parts of the world, women face barriers to accessing improved agricultural inputs. In Tanzania, a program called the National Agricultural Input Voucher Scheme (NAIVS) was implemented from 2008 to 2014 to provide smallholder farmers with vouchers to purchase inputs at a subsidized price, with the goal of improving productivity and increasing income and food security. Using data from the Tanzania Living Standards Measurement Study panel, we analyzed the effects of NAIVS on female-headed households’ market participation, sales, and profitability. The analysis showed that NAIVS increased market participation of female-headed households by 11%, particularly in downstream positions in domestic value chains. However, there were no discernible effects on sales and profitability, indicating that although the program reduced input costs, production costs remained high enough to offset the efficiency gains from the subsidized inputs.

Household information and communication technology usage and post-harvest losses in Nigeria

PurposePost-harvest losses are becoming a huge issue globally and predominantly severe in developing countries. Food losses decrease farm income by 15% for about 480m small-scale farming households. With technology adoption, particularly, Information and Communication Technology (ICT) usage, minimising post-harvest losses will be more effective, because of its ability to build households’ human development by bridging the information gap.Design/methodology/approachThis study empirically examines the impact of ICT usage on post-harvest losses in Nigeria, utilising Wave 4 (2018/2019) of the Living Standards Measurement Studies (LSMS), Integrated Survey on Agriculture (ISA). The study engages the Logit regression and Propensity Score Matching (PSM) to analyse the data.FindingsThe findings show that post-harvest losses constitute about 38% of household agricultural production. In addition, it shows that the influence of ICT is statistically significant and positive in reducing post-harvest losses.Research limitations/implicationsIt implies that access to mobile phones and the Internet by households helps in developing their human capital through information access, for example, by linking them to the market and enhancing value chain participation. In addition, the implication is that mobile phone and Internet access contribute 1.87% and 2.68%, respectively, to reducing post-harvest losses. The findings suggest that there is a need for the government to improve support mechanisms for ICT usage among farming households.Social implicationsThe study contributes to the society by examining how the well-being of farmers can be improved upon in order to increase their productivity.Originality/valueThe study on the contribution of ICT to post-harvest losses is relatively sparse in the extant literature. Therefore, this study is among the very few to empirically examine the impact of different ICT indicators, using the LSMS-ISA (2019) data and engaging propensity matching, while focusing on the household heads.

Climate change in Tigray, Ethiopia: Assessing impacts on smallholders’ risk perception and food security

Amidst the ongoing global climate change crisis, characterized by unpredictable weather patterns and increasing environmental shocks, farming communities are among the most vulnerable. This vulnerability is particularly evident in Tigray, Ethiopia. This study, which investigates the incidence of climate change and its variability in relation to risk perception and food security of farming communities in Tigray, has significant implications for future action. It uses climate and the Living Standards Measurement Study panel data. A multi-method analytical procedure is employed to assess changes in temperature and rainfall, understand farmers’ climate change risk perception, and signify the welfare effects of droughts on farmers. The study finds significant warming trends, particularly increasing warming nights, and variable but increasing rainfall trends. Farmers do perceive climate change as a reality (85.53%) and a threat to their welfare (23%). Cooperation, diversification, irrigation, wealth, drought, and access to services were identified as drivers of this risk perception. Similarly, the study found drought is a significant driver of food insecurity. Other variables associated with food security status substantially are wealth, head marital status, and non-farm participation. It concludes that climate change is a reality and a perceived risk in Tigray. It poses a threat to the lives and livelihoods of its farming communities. It is recommended that farm households’ adaptive capacity be enhanced through improved livelihood options, promotion of cooperation, development of irrigation schemes, and increased access to weather and climate information.

Energy deprivation to financial prosperity: Unveiling multidimensional energy Poverty's influence

The purpose of this research is to assess how energy poverty affects an individual's social wellbeing and financial constraints. The present research examines the effects of energy deprivation on a family's well-being, educational attainment, and economic advancement using survey data from PSLM (Pakistan Social and Living Standard Measurement). The investigation's empirical findings imply that a household's needs for energy are directly correlated with the fuel type they use and how little or expensively they rely on renewable energy. The consequent implications of energy dependence on family prosperity are significant. Energy-poor households have been shown to be more prone to experience respiratory illnesses, pay more for health care, drop out of school, and have less employment opportunities.

Migrant remittances and the adoption of information and communication technology

In this study, we demonstrate that migrant families adopt ICT more than non-migrant households, the diffusion is higher among the recipients of remittances resulting from the long-duration, long-distance international migration than the short-duration, short-distance migration, and that foreign remittance recipients adopt advanced technologies to a greater extent compared to domestic remittance-recipients. We empirically test these hypotheses by using data on 160,624 households from the 2019 to 20 round of the Pakistan Social and Living Standards Measurement Survey and employing an instrumental-variable strategy as well as generalized two-step Heckman and Augmented Inverse Probability Weighting estimators. We come up with evidence of the significant effects of remittances on ICT adoption. Households with at least one domestic or international migrant, on average have 0.27 per capita mobile ownership and 0.12 higher probability of having internet at home compared to non-recipient households. This effect is visible more among international-remittance than domestic-remittance-receiving households. ICT adoption also increases with the amount received. We find that remittances accelerate the adoption of smartphones and social media apps. Besides, while international remittances substantially increase the use of smartphones, internet and social media apps, domestic remittances mainly improve basic phone adoption. Remittances also help reduce the rural-urban and male-female digital divide.

Electrification or deforestation? Evidence from household practices in Côte d’Ivoire

This paper investigates the impact of electrification on household practices related to deforestation in Côte d’Ivoire, specifically focusing on the expansion of arable farms and the use of biomass fuels. A theoretical framework inspired by the heterogeneous agricultural households model proposed by Angelsen (1999) is employed to theoretically elucidate the relationship between electrification and the expansion of arable farms. Using data from the latest four waves of the household Living Standards Measurement Surveys (1998, 2002, 2008, and 2015) and a pseudo-panel fixed effects regression model, we find that increased access to electricity significantly reduces both the average size of arable farms and the collection of firewood from forests. These results are robust across various alternative specifications and estimation methods. Moreover, an electrification threshold of approximately 80% has been identified, beyond which the beneficial impacts of electrification on forest loss would disappear.

Post-Flood Challenges to Polio Eradication in Pakistan

This study aims to investigate the effect of flood on polio vaccination coverage among children aged 0-2 years in Pakistan, with a particular emphasis on the impact of floods on vaccination rates in both urban and rural areas, male and female, families of varying sizes, families with educated and uneducated heads, and the socio-economic status of households. The study utilized household-level data from the Pakistan Social and Living Standards Measurement surveys conducted between 2004-05 and 2014-15. Difference-in-Differences (DID) analysis and inverse probability of treatment weighting (IPTW) were employed, treating the flood as a quasi-natural experiment. The flood in 2010 in Pakistan disrupted polio vaccination coverage significantly; particularly in rural areas and among households led by uneducated parents. During the flood, 135 out of 1000 children aged 0-2 years were not fully vaccinated against poliovirus, and this number varied across different regions and family sizes with 171 fewer children per 1000 fully vaccinated during the flood in rural flooded areas. The adverse effects persisted for several years, with disparities observed based on parental education, gender, and household assets. Despite some recovery, the decline in polio immunization coverage remained significant in the years following the flood, especially in large families and impoverished households. Disparities based on gender, socioeconomic status, parental education, and family size were evident. Regardless of global efforts to combat polio, natural disasters like floods pose significant challenges to immunization programs, emphasizing the need for targeted interventions and improved disaster preparedness in vulnerable regions.

Improved drinking water, healthier children? Evidence from Pakistan

Purpose One of the United Nations’ sustainable development goals is to ensure the availability of improved drinking water for everyone. In this study, we examine the association between access to improved drinking water at the district level and child nutritional outcomes in Pakistan.Design/methodology/approach We employ district-level unbalanced panel data from Pakistan from various rounds of Pakistan Social and Living Standards Measurement Surveys and Multiple Indicators Cluster Surveys compiled by the Data4Pakistan, Pakistan District Development Portal. We examine the impact of the percentage of the population in a given district with access to clean drinking water on the percentage of stunted, underweight and wasted children in the district. The analysis proceeds in two steps. In the first step, we explore the spatial distribution of improved drinking water coverage and child development outcomes across districts. In the second step, we study their relationship by employing standard panel estimation methods and controlling for district characteristics.Findings The spatial analysis reveals the large disparity among districts and provinces in terms of improved drinking water coverage and child nutrition. The estimation results indicate that there is a significant association between the accessibility of improved drinking water and child development outcomes. The effect is significant for child stunting and underweight but not for child wasting. The impact appears to be stronger in rural districts. These findings are robust to alternate empirical strategies.Originality/value This is the first such study to examine the provision of improved drinking water at the district level in relation to child developmental outcomes in a developing country context.Peer reviewThe peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-09-2023-0739

Effects of food price changes on child undernutrition among agricultural households in Nigeria

This study examines the effects of changing food prices on the nutritional outcomes of children under five years old in Nigeria, utilising data from the 2013 and 2016 Nigeria Living Standards Measurement Study – Integrated Surveys on Agriculture (LSMS-ISA). We applied correlated random-effects probit and fixed-effects regression models to analyse the data. Results indicate an increase in stunting and decreases in wasting and underweight conditions among children over the years studied. Specifically, higher prices for fish, eggs, beef, rice, and cooking oil have a significant association with increased stunting, while increases in the prices of maize and garri are associated with greater wasting. Underweight increase with higher prices of milk, maize, and rice. In contrast, modest increases in yam and beans prices have not exacerbated undernutrition. The study also highlights the importance of household income growth and women's involvement in financial decisions in reducing child undernutrition. We advocate for agriculture-led, nutrition-sensitive policies that address the high costs of animal proteins and staples such as rice, maize, and garri, while monitoring and carefully regulating upticks in the prices of yam and beans.

Determinants of school dropouts and the impact on youth unemployment: Evidence from Ethiopia

Despite significant youth school dropouts in Ethiopia, the household characteristics that contribute to dropouts and the impact of dropouts on youth unemployment remain unclear. To fill this gap, this study analyzes the factors that influence youth dropouts and evaluates the impact of dropouts on youth unemployment in Ethiopia using data from the 2019 World Bank Living Standards Measurement Study-Integrated Surveys on Agriculture. We employ endogenous switching regression to estimate the impact of youth dropouts on the likelihood that a household has unemployed youths and the number of unemployed youths in the household. The findings reveal that different parental characteristics such as age, education, and whether parents live together are negatively associated with the probability of youth dropouts, while households with a Muslim head are more likely to have school dropouts than Orthodox-headed households. Households who have multiple income sources, are located in rural areas, are located far from the school, and have disabled family members are also found to be more likely to have youth dropouts. In addition, our findings reveal that youth dropouts increase the probability of having unemployed youths in the household and raise the number of unemployed youths in the household. The study’s findings highlight the need for considering households’ characteristics and other factors associated with youth dropouts when developing educational interventions to reduce youth dropouts in Ethiopia. Furthermore, investment in parental education and infrastructural facilities such as roads and schools could reduce youth unemployment in Ethiopia, particularly in rural areas where public schools are the only option.

Who Demands Technical and Vocational Education in Pakistan? A PSLM Analysis of Socio-Economic Determinants

Purpose: The present study investigates the influence of demographic factors on the demand for Technical and Vocational Education and Training (TVET) in Pakistan. The government of Pakistan has implemented various skill enhancement programs to harness the demographic dividend. However, only a small portion of the workforce receives any form of TVET, contributing to a shortage of skilled workers in the country. Many industries, particularly in manufacturing and mining, face deficits in the skilled labour. Consequently, this study aims to examine the role of demographic factors in shaping the demand for TVET within the Pakistani context. Methods: For the TVET demand's estimation, this study employed the Pakistan Social and Living Standard Measurement (PSLM) dataset of 2018–19 by using binary logistic regression analysis (BLRA). The demographic variables include the household's income, household head's education, household size, male proportion of the target age group, household head's age, and region of the household. Findings: The findings indicate that households in the higher income category do not demand TVET. Moreover, if the head of the household is highly educated, then the household is less likely to participate in TEVT. So, the higher the socio-economic status, the lower the probability of demand for TVET from the better-off students. Further, this study also indicates that boys are more likely to participate in TVET-related degrees, while females are less likely to participate in TVET due to the non-availability of institutes and hostel facilities, poor transportation, the limited number of trades available for females, and security issues. Conclusion: The findings provide insightful evidence to support the idea that the higher the socio-economic status of households, the lower the probability of demand for a TVET degree or diploma. Similarly, children of parents with university education are less likely to pursue TVET-related degrees. The reason is likely attributed to the perception that TVET-associated degrees and diplomas are considered inferior due to their lower standing and prestige as compared to general or professional degrees. This study suggests that the attractiveness of TVET can be enhanced by improving the quality of TVET, improving labour market outcomes, and creating a pathway to general education. Overall, this study not only contributes to empirical analyses of socio-economic determinants in TVET demand but also suggests that its findings can be applied not only to South Asian countries but also to other comparable nations with similar cultural ties and affinities.

Participation of farmers in market value chains: A tailored Antràs and Chor positioning indicator

This study presents a micro-level indicator of farmers’ positioning in the market chain, based on the conceptual framework outlined by Antràs and Chor (2013, 2018). The indicator considers the selling location of a farming household and its crop buyers. Using panel data from the World Bank’s ‘Living Standards Measurement Study: Integrated Surveys on Agriculture’ for Ethiopia and Nigeria, this paper applies the proposed indicator empirically and showcases its superior performance in comparison to existing alternatives at the micro-level. Furthermore, by analyzing the dynamics of farmers’ food and total consumption over time and controlling for various household and production characteristics, as well as potential confounding factors, this study shows that moving towards a downstream position in the market chain has a positive impact on farmers’ food and total consumption levels. The results are validated through sensitivity analysis and robustness checks.

Investigation of multidimensional poverty in Pakistan at the national, regional, and provincial level

AbstractTo achieve the sustainable development goal of “no poverty”, many attempts have been made to measure poverty so that policy intervention can target the right people with the correct intensity. Since the traditional method of a unidimensional approach using monetary indicators, such as income and consumption, is now considered insufficient, a multidimensional approach has been employed using non-monetary indicators. The latter approach encompasses the different poverty aspects affecting an individual’s capabilities and functioning. This study aimed to calculate multidimensional poverty in Pakistan using the Alkire &amp; Foster method and Pakistan Social and Living Standards Measurement (PSLM) published by the Pakistan Bureau of Statistics data for 2018–19. To further complete the research, a binary logistic regression has been run to measure the effects of a deviation in income status on multidimensional poverty to see the impact of monetary income on non-monetary measures. Results show that the national global Multidimensional Poverty Index (MPI) is 0.24, meaning that multidimensionally poor people in Pakistan experience 24% of the total deprivations. The most deprived dimension of the three is education (44.7%), which needs special attention. Furthermore, if a household’s total annual income increases and becomes more significant than the mean income of the sample, the household’s probability of being multidimensionally poor will decrease. This implies that with the increase in average national income, the national poverty will reduce not only in absolute terms but also multidimensionally. This study’s findings have several implications for policymakers, and the results of the MPI should align the allocation of public sector resources calculated to give a geographical and sectoral image of the poverty situation, which will guide policy designs and allocation of budget and resources.