"The Determinants of Household Net Wealth in Indonesia: Application of Quantile Regression"

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We are grateful that our publication titled "The Determinants of Household Net Wealth in Indonesia: Application of Quantile Regression" authored with Susan Olivia and Les Oxley (the University of Waikato, New Zealand) is published at the Journal of Southeast Asian Economies Vol. 41, No. 2 (2024), pp. 152–78

Abstract

Estimation of the determinants of household net wealth that consider heterogeneity across income classes using only average values can lead to faulty interpretations. This paper controls for such variation in classes in relation to efforts to increase household wealth by applying quantile regression using Indonesian household data. For this purpose, the study uses the Indonesian Family Life Survey, using five waves of the survey from 1993 to 2014. Empirical findings show that heterogeneity in household characteristics across classes can influence wealth, with major differences between urban and rural households. Some significant contributors include household size, years of schooling of household head, intergenerational money transfers and agriculture as the main employment sector. Some variables that display an increasing pattern with higher returns for higher classes are years of schooling of household heads and intergenerational money transfers. Meanwhile, the variable with a decreasing pattern is agriculture as the main employment sector.

Keywords: household net wealth, heterogeneity, average value, quantile regression, Indonesia


Citation: 

Soseco, T., Olivia, S., Oxley, L. (2024). The Determinants of Household Net Wealth in Indonesia: Application of Quantile Regression. Journal of Southeast Asian Economies. 41(2):152–78

https://bookshop.iseas.edu.sg/publication/7929#contents

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