Demarcating Households: An Integrated Income and Consumption Analysis

Hawati Abdul Hamid

Households, Demography & Public Wellbeing

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Dec 1, 2019

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Demarcating Households: An Integrated Income and Consumption Analysis

Income, & Consumption

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Data Overview

This report examines approaches in public policies in addressing households’ needs, especially those with limited economic resources. It also discusses the welfare policies that have evolved from focusing on the households in absolute poverty to the poorest 40% households (B40). The analytical framework of this study is anchored on an integrated analysis of household income and consumption—two measures acknowledged in the literature as good proxies in capturing households’ material well-being and in comparing the distribution of living standards across households.

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The report addresses the following questions:

Is the present B40, M40 and T20 demarcation useful in classifying households according to their economic well-being?
Are the “B40” households homogeneous? Is it justifiable to equate the B40 as being “poor” and consequently, as a target group for government policies and assistance?
Do the “M40” households demonstrate characteristics of a “middle-income status” group; are they the aspirational/“middle-income class” group?

The findings of this report are based on the state of households in 2014 since we have utilised mostly microdata from the Household Income & Basic Amenities Survey (HIS/BA) and Household Expenditure Survey (HES) for that year.