Changes in the distribution of household consumption in Southeast Asia
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PhD Seminar (Econ)
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This paper uses household survey data from five Southeast Asian countries (Cambodia, Indonesia, the Philippines, Thailand and Vietnam) to examine changes in the distribution of household consumption over the period 2006–2014. We decompose changes in household consumption at different points of the distribution into observed characteristics (household income, household size, region and characteristics of the household head) and unobserved characteristics. Changes in household income are responsible for a large part of the observed increases in household consumption, but the relevance of household income varies substantially across countries. The contribution of household size is negative, because household consumption increased despite a decline in household size. A small part of the advancements can be attributed to urbanisation, with the exception of the Philippines. Enhancements in education are responsible for a moderate increase in household consumption, while changes in demographic characteristics play a minor role.
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