Search results

This article conceptualises how the economic well-being of an entrepreneurial household affects its members' mental accounting process to establish its affordable loss for a plunge decision.

The article used research literature to analyze the resources available for entrepreneurial endeavours against a household's ability to maintain acceptable minimum material living standards, juxtaposing income and wealth against competing consumption and investment opportunities.

Mentally accounting for whether household resources can meet minimum material living standards is central to entrepreneurs' ability to raise affordable loss and decide to invest in a new venture. The article proposes that entrepreneurial households establish affordable loss by availing their money exceeding that required to maintain acceptable minimum material living standards. In low-income households, the author assumes that members are not employed and can thus avail their time (versus money) towards affordable loss.

Economic well-being introduces mental accounts of income and wealth and a hedonic reference outcome in the material living standards of households required to meet basic needs. The article introduces the tension entrepreneurial households face between using their income and wealth towards investing in a new business and maintaining their material living standards. It introduces the idea that a loss can be “affordable” according to an entrepreneurial household's ability to remain above its acceptable minimum material living standard. This view prompts scholars to consider a household unit of analysis and avoid assuming an entrepreneur makes the plunge decision in isolation.

Background: Rising food bank usage in the UK suggests a growing prevalence of food insecurity. However, a formalised, representative measure of food insecurity was not collected in the UK until 2019, over a decade after the initial proliferation of food bank demand. In the absence of a direct measure of food insecurity, this article identifies and summarises longitudinal proxy indicators of UK food insecurity to gain insight into the growth of insecure access to food in the 21st century.

Methods: A rapid evidence synthesis of academic and grey literature (2005–present) identified candidate proxy longitudinal markers of food insecurity. These were assessed to gain insight into the prevalence of, or conditions associated with, food insecurity.

Results: Food bank data clearly demonstrates increased food insecurity. However, this data reflects an unrepresentative, fractional proportion of the food insecure population without accounting for mild/moderate insecurity, or those in need not accessing provision. Economic indicators demonstrate that a period of poor overall UK growth since 2005 has disproportionately impacted the poorest households, likely increasing vulnerability and incidence of food insecurity. This vulnerability has been exacerbated by welfare reform for some households. The COVID-19 pandemic has dramatically intensified vulnerabilities and food insecurity. Diet-related health outcomes suggest a reduction in diet quantity/quality. The causes of diet-related disease are complex and diverse; however, evidence of socio-economic inequalities in their incidence suggests poverty, and by extension, food insecurity, as key determinants.

Conclusion: Proxy measures of food insecurity suggest a significant increase since 2005, particularly for severe food insecurity. Proxy measures are inadequate to robustly assess the prevalence of food insecurity in the UK. Failure to collect standardised, representative data at the point at which food bank usage increased significantly impairs attempts to determine the full prevalence of food insecurity, understand the causes, and identify those most at risk.

Homeownership provides shelter and is a vital component of wealth, and house purchase signifies a lifetime achievement for many households. For South Africa confronted with social and structural challenges, homeownership by the low and lower middle-income household is pivotal for its structural transformation process. In spite of these potential benefits, research on the affordable housing market in the context of South Africa is limited. This study aims to contribute to this knowledge gap by answering the question “do changes in household income per capita have a symmetric or asymmetric effect on affordable house prices?”

A survey of the international literature on house prices and income revealed that linear modelling that assumes symmetric reaction of macroeconomic variables dominates the empirical strategy. This linearity assumption is restrictive and fails to capture possible asymmetric dynamics inherent in the housing market. The authors address this empirical limitation by using asymmetric non-linear autoregressive distributed lag models that can test and detect the existence of asymmetry in both the long and short run using data from 1985Q1 to 2016Q3.

The results revealed the presence of an asymmetric long-run relationship between affordable house prices and household income per capita. The estimated asymmetric long-run coefficients of logIncome[+] and logIncome[−] are 1.080 and −4.354, respectively, implying that a 1% increase/decrease in household income per capita induces a 1.08% rise/4.35% decline in affordable house prices everything being equal. The positive increase in affordable house prices creates wealth, helps low and middle-income household climb the property ladder and can reduce inequality, which provides support for the country’s structural transformation process. Conversely, a decline in affordable house prices tends to reduce wealth and widen inequality.

This paper recommends both supply- and demand-side policies to support affordable housing development. Supply-side stimulants should include incentives to attract developers to affordable markets such as municipal serviced land and tax credit. Demand-side policy should focus on asset-based welfare policy; for example, the current Finance Linked Income Subsidy Programme (FLISP). Efficient management and coordination of the FLISP are essential to enhance the affordability of first-time buyers. Given the enormous size of the affordable property market, the practice of mortgage securitization by financial institutions should be monitored, as a persistent decline in income can trigger a systemic risk to the economy.

The study results illustrate the importance of homeownership by low- and middle-income households and that the development of the affordable market segment can boost wealth creation and reduce residential segregation. This, in turn, provides support to the country’s structural transformation process.

The affordable housing market in South Africa is of strategic importance to the economy, accounting for 71.4% of all residential properties. Homeownership by low and lower middle-income households creates wealth, reduces wealth inequality and improves revenue collection for local governments. This paper contributes to the empirical literature by modelling the asymmetric behaviour of affordable house prices to changes in household income per capita and other macroeconomic fundamentals. Based on available evidence, this is the first attempt to examine the dynamic asymmetry between affordable house prices and household income per capita in South Africa.

This study aims to examine the effect of crop diversification (CD), as a climate change adaptation strategy, on farm household’s welfare in terms of farm income and demand for labor. It explores whether adoption of CD is a win-win strategy on household income and demand for on-farm labor. It also examines the determinants of rural household’s net farm income and family labor demand.

A household-plot level data were collected in 2015 from 929 rural farm households and 4,778 plots in the Nile Basin of Ethiopia. The data comprise farm and household characteristics accompanied by geo-referenced climate data such as long-term average temperature and amount and variability of growing season rainfall. The authors estimate an endogenous switching regression model to measure the effect of CD on the farm household’s welfare, using net farm income and household labor demand as a welfare indicator.

The results indicate heterogeneous effects of climate variables on farm income between adopters and non-adopters of CD. The study also confirms the win-win effect of adoption of CD with a positive and significant effect on farm income and a reduction in demand for on-farm labor. The results suggest that adoption of CD helps improve the well-being of farm households and build a resilient agricultural system.

As the study used a cross-sectional data, it is limited to show the time effect of practicing CD on the household’s welfare.

First, the authors investigate, to their knowledge for the first time, the existence of synergy or tradeoff in the effect of CD on two dimensions of rural households’ welfare (net farm income and labor demand). Second, they investigate the heterogeneous effect of climate change adaptation strategies on the farm household’s welfare between adopters and non-adopters. This is unlike previous studies that consider climate change adaptation strategies as having a homogeneous effect. However, this approach is inappropriate since the effect of adaptation strategies is different for adopters and non-adopters.

The authors aim to demonstrate the impact of allowing for unequal intra-household distribution of resources on income poverty and income inequality.

The paper applies a collective consumption model to study the intra-household distribution of resources in Visegrád countries (V4). It utilises subjective financial satisfaction as a proxy for indirect utility from individual consumption to estimate the indifference scales within couples instead of the traditional equivalence scale. The European Union Statistics on Income and Living Conditions (EU-SILC) 2013 and 2018 data are applied.

This study’s results indicate substantial economies of scale from living in a couple that are generally higher than implied by the commonly applied equivalence scale. The sharing rule estimates suggest that at the mean of distribution factors, women receive a consumption share between 0.4 and 0.6; however, some of the results are close to an equal sharing of 0.5. The female consumption share rises with her contribution to household income. Regarding income poverty and inequality, the authors show that both these measures might be underestimated in the traditional approach to equal sharing of resources.

The authors add to the empirics by estimating indifference scales for Czechia (CZ), Hungary (HU), Poland (PL) and Slovakia (SK), countries that have not been involved in previous research.

The results of this study have significant policy implications for charting a new course toward enhancing agricultural productivity among Chinese farmers.

By establishing a rural household decision-making model based on the transfer market of farmland operation rights, this paper systematically analyzes the effects of land transfer-in and land transfer-out on the productivity (per labor income) of rural households. The authors conducted basic regression analysis and robustness tests using propensity score-matching and proxy variable approaches based on the micro survey data from rural households in 30 counties in 21 provinces/municipalities/autonomous regions in 2013.

After the completion of land transfer, the total productivity of rural households transferring in lands will increase with an increase in the agricultural productivity; the total productivity of rural households transferring out land will increase due to a rise in non-agricultural productivity and the absolute total productivity of rural households not involved in land transfer will remain unchanged.

Unlike previous literature, this paper discusses the impacts of land transfer-in and transfer-out on total productivity, agricultural productivity and non-agricultural productivity among various rural households (i.e. those transferring in land, transferring out land or which are self-sufficient).

This paper explores the relationship between married women's intrahousehold decision-making participation and marital gender roles, next to factors suggested in the household bargaining literature. Additionally, the authors investigate whether women's employment carries the same importance for decision-making participation as contributions to household incomes.

Using 2011/2012 Nicaraguan Demographic and Health Survey (DHS), the authors estimate multinomial logistic regressions for eight decision-making domains, analyzing three levels of decision-making: wife-dominant or sole decisions, joint decision-making (with the partner) and decision-making by someone else. The authors create an additive index for measuring internalized marital gender roles.

Women's intrahousehold decision-making participation is explained differently depending on the decision-making area and level of participation. Women with a better relative position vis-à-vis partners and not following patriarchal gender roles are more likely to make decisions jointly with their partners, but not alone. Women's age and educational level are the strongest predictors in the analysis. Women's employment reduces their decision-making participation in children's disciplining and daily cooking-related decisions.

It focuses on married women only, while marital status might be a determinant of decision-making itself and left out the contribution of unearned incomes.

Interventions aimed at increasing women's intrahousehold decision-making participation should not only focus on economic endowments but also comprehend the gendered dynamics governing intrahousehold allocation.

The study incorporates quantitative measures of marital gender roles in the study of intrahousehold decision-making. It also contributes to the literature with insights from contexts where women's involvement in employment increased against a background of patriarchal gender roles.

This study evaluates the impact of government social protection interventions on households’ welfare in South Africa.

The study uses survey data comprising 393 observations and the multinomial logistic regression technique to analyse the effect of government interventions on households’ welfare. For robustness purposes, a negative binomial regression model is also estimated whose results corroborate the main results from the multinomial regression model.

The study’s findings show that government economic interventions through social protection significantly reduce the likelihood of a decrease in household income or consumption. COVID-19 grant/social relief of distress grant, unemployment insurance, tax relief and job protection and creation are all significant in sustaining household income and consumption.

The findings have policy implications for social development. Specifically, the findings support the use of government social protection as a safety net for low-income groups in South Africa.

The study presents preliminary evidence on the effectiveness of several measures used to ameliorate the COVID-19-induced recession within the South African context.

This paper aims to focus on non-poor households that during the Great Recession experienced economic stress (ES). That is, whose economic comfort was reduced taking into account their previous living standards. The paper seeks to determine how the crisis has affected this extensive (and key) social group.

The analysis has been performed in a dynamic way. The non-poor households ES situation and its changes are studied throughout the period 2008-2016 by taking the four-year intervals provided by the longitudinal Spanish Living Conditions Survey. The authors discuss and select the circumstances to determine whether ES has occurred. To identify which variables determine the probability of suffering ES the authors use a standard logit model.

The main variable is the tenure status of the dwelling: property with a mortgage or rented multiply the risk of ES by up to 3.5 times. ES falls as the household’s work intensity increases. However, an improvement in the employment situation cannot be associated with a reduction in ES probability. The main socio-demographic variables behave as predicted: woman householder, grow in the number of household members and bad health increase the risk of ES, and the higher the level of education of the householder, the lower the risk.

There are very few studies regarding the people above the poverty line. Exploring and analyzing the factors determining the sensitivity of the largest part of the population to the crisis is very relevant, as the pace of the economic recovery depends largely on them.

The purpose of this paper is to empirically explore the financial well-being (FWB) of Malaysian households and to construct a subjective FWB index with present and future time perspectives.

Data were collected from 1,867 respondents across five major regions in Malaysia. Adapting the InCharge Financial Distress/Financial Well-being (IFDFW) Scale by Prawitz et al. (2006) and the method of computing an index by Devlin (2009), this study develops an FWB index using subjective measures that include future time perspectives (retirement). The index was employed to measure the FWB across low-, middle- and high-income groups and socio-demographic characteristics.

This study finds evidence that Malaysians' FWB is at an average level (46.8). Middle-income households' FWB (46.1) flanks between the financial well-being index (FWBI) levels of the low-income (37.4) and high-income households (58.7). Across age groups, education levels and employment sectors, the FWB of Malaysians significantly varies, although not across different ethnics, religions, zones and residential areas. Overall, the results suggest that the detrimental effects of FWB are perceived by all Malaysian households nationwide regardless of their religion, ethnicity and residential areas.

The results of this study complement the other well-being indices used by policymakers and may serve as a useful input for government and policymakers for them to formulate appropriate strategies to promote higher FWB of Malaysian households based on their socio-demographic characteristics.

This study used primary data and developed a subjective FWB index that leverages on people's perceptions of their own financial well-being while including present and future time perspectives. The main contribution of this paper is to construct an index that is easily interpretable and that complements the existing FWB indices, and to identify the segments of society that have low vis-à-vis high FWB.