Table 7.
Estimation of Financial Vulnerability Determinants by Economic Class. This table shows determinants estimation of financial vulnerabilities by economic class using SNRT 2017 which is divided into three different measures for Low, Middle and High Income class of household that differ to subjective and objective index. To note, M.E.: Marginal Effect, S.E: Standard Error and Significance level ∗∗∗p < 0.01, ∗∗p < 0.05, ∗p < 0.1.
| Dependent Variables: Financial Vulnerability Index |
Low Income Class |
Middle Income Class |
High Income Class |
|||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Subjective |
Objective |
Subjective |
Objective |
Subjective |
Objective |
|||||||
| M.E. | S.E | M.E. | S.E | M.E. | S.E | M.E. | S.E | M.E. | S.E | M.E. | S.E | |
| Debt to Income Ratio | 0.000 | (0.002) | 0.000 | (0.002) | 0.002∗∗ | (0.001) | 0.000 | (0.001) | 0.000 | (0.001) | 0.000 | (0.001) |
| Consumption Credit to Total Credit Ratio | 0.012∗∗∗ | (0.002) | 0.006∗∗∗ | (0.002) | 0.004∗∗∗ | (0.001) | 0.004∗∗∗ | (0.001) | 0.003∗∗ | (0.001) | 0.004∗∗∗ | (0.001) |
| Bank Savings Ownership Dummy | −0.740∗∗∗ | (0.260) | −0.640∗∗ | (0.264) | −0.550∗∗∗ | (0.116) | −0.910∗∗∗ | (0.109) | −0.060 | (0.213) | −0.730∗∗∗ | −0.730∗∗∗ |
| Home/Land Ownership Dummy | −0.570∗∗ | (0.236) | −0.470∗∗ | (0.212) | −0.430∗∗ | (0.185) | −0.250 | (0.163) | −0.500∗∗ | (0.203) | 0.176 | (0.222) |
| Jewelry Ownership Dummy | −0.450∗∗∗ | (0.144) | −0.210 | (0.134) | −0.820∗∗∗ | (0.115) | −0.470∗∗∗ | (0.106) | −1.080∗∗∗ | (0.154) | −0.670∗∗∗ | (0.144) |
| Household Income (Log) | −0.180 | (0.117) | −1.100∗∗∗ | (0.141) | −0.620∗∗∗ | (0.092) | −1.940∗∗∗ | (0.114) | −0.730∗∗∗ | (0.076) | −1.350∗∗∗ | (0.082) |
| Land Prices (Log) | 0.047 | (0.040) | 0.019 | (0.039) | 0.052∗ | (0.028) | 0.001 | (0.029) | 0.014 | (0.037) | −0.070∗ | (0.039) |
| Financial Assistance Recipient | 0.263 | (0.166) | 0.026 | (0.158) | 0.319∗∗∗ | (0.098) | 0.222∗∗ | (0.096) | −0.060 | (0.117) | 0.169 | (0.113) |
| Oversea Remittance Recipient | −0.020 | (0.589) | −0.270 | (0.480) | −0.330 | (0.288) | −0.050 | (0.300) | 0.186 | (0.342) | 0.104 | (0.386) |
| Bank Account Average per household members | −0.110 | (0.602) | −0.830 | (0.606) | −0.250∗ | (0.131) | −0.540∗∗∗ | (0.152) | −0.520∗∗∗ | (0.150) | −0.550∗∗∗ | (0.137) |
| Age of Head of the Household | 0.000 | (0.006) | 0.000 | (0.005) | 0.000∗∗ | (0.004) | 0.003 | (0.004) | 0.000 | (0.005) | 0.004 | (0.005) |
| Household Budget | 0.124∗∗ | (0.048) | 0.178∗∗∗ | (0.044) | 0.161∗∗∗ | (0.031) | 0.153∗∗∗ | (0.030) | 0.067∗∗ | (0.029) | 0.094∗∗∗ | (0.030) |
| Province (Urban-Rural) Dummy | Yes | Yes | Yes | Yes | Yes | Yes | ||||||
| Coping Strategies Dummy Variable (on the basis of savings withdrawal) | ||||||||||||
| Minimizing Expenditures | 0.605∗∗ | (0.282) | 0.369 | (0.269) | 0.631∗∗∗ | (0.122) | 0.478∗∗∗ | (0.126) | 0.626∗∗∗ | (0.133) | 0.382∗∗∗ | (0.129) |
| Selling goods | 0.134 | (0.308) | 0.506∗ | (0.270) | 0.390∗∗ | (0.159) | 0.381∗∗ | (0.159) | 0.467∗∗∗ | (0.173) | 0.324∗ | (0.177) |
| Work longer | 0.758∗∗ | (0.334) | 0.560∗ | (0.299) | 0.744∗∗∗ | (0.211) | 0.287 | (0.219) | 0.851∗∗∗ | (0.312) | −0.050 | (0.333) |
| Extra work | 0.307 | (0.312) | 0.396 | (0.335) | 0.402∗∗ | (0.186) | 0.472∗∗∗ | (0.172) | 0.937∗∗∗ | (0.265) | 0.461∗ | (0.263) |
| Borrow Food from friends or neighbors | 1.261∗∗∗ | (0.291) | 0.336 | (0.277) | 1.220∗∗∗ | (0.152) | 0.752∗∗∗ | (0.141) | 1.268∗∗∗ | (0.178) | 0.398∗∗ | (0.174) |
| Borrow from Employer | 1.008∗∗ | (0.467) | 0.274 | (0.385) | 1.056∗∗ | (0.425) | 1.269∗∗∗ | (0.397) | 0.348 | (0.434) | 0.194 | (0.443) |
| Pawn of Goods | 0.558 | (0.740) | −0.240 | (0.498) | 0.206 | (0.292) | 0.616∗ | (0.331) | 0.774∗∗ | (0.325) | 0.513 | (0.326) |
| Borrow from traditional microfinance (arisan) | 1.488∗∗∗ | (0.428) | 1.168∗∗∗ | (0.438) | 1.676∗∗∗ | (0.568) | 1.687∗∗∗ | (0.411) | 0.566 | (0.493) | 0.000 | (0.513) |
| Home Equity Loan | 3.521∗∗∗ | (0.251) | 1.360∗∗∗ | (0.280) | 0.822∗∗ | (0.337) | −1.100∗∗∗ | (0.350) | 1.674∗∗∗ | (0.394) | 0.593 | (1.042) |
| Loan Takeover | 1.838∗∗∗ | (0.457) | −0.970 | (1.218) | ||||||||
| Credit Cards | 0.308 | (0.293) | 0.574∗ | (0.301) | ||||||||
| Bank Loan | 0.002 | (1.479) | 1.971∗∗∗ | (0.388) | 0.281 | (0.404) | 0.963∗∗∗ | (0.351) | 0.180 | (0.267) | 0.287 | (0.264) |
| Loan from Work | −0.070 | (0.471) | 0.723∗∗ | (0.340) | −0.050 | (0.846) | 0.240 | (0.322) | 2.092∗∗∗ | (0.542) | 1.085∗∗∗ | (0.374) |
| Borrow informally/loan sharks | 1.817 | (1.510) | 0.018 | (0.788) | 1.176∗∗∗ | (0.221) | 1.636∗∗∗ | (0.217) | ||||
| Unpaid Claims | 3.520∗∗∗ | (0.251) | −2.030∗∗∗ | (0.480) | 3.287∗∗∗ | (1.002) | −0.020 | (0.369) | 3.580∗∗∗ | (0.280) | 2.818∗∗∗ | (0.294) |
| IKNB Loans | 0.540 | (1.277) | 0.754∗ | (0.392) | −1.690∗∗∗ | (0.557) | −1.290 | (1.662) | ||||
| Others | 1.987∗∗∗ | (0.553) | 0.581 | (0.592) | 1.660∗∗∗ | (0.444) | 0.603 | (0.569) | 0.670 | (0.968) | −0.480 | (0.588) |
| Observation Total | 633 | 633 | 1630 | 1630 | 1408 | 1408 | ||||||