The dynamics of Thai household poverty and its implications

Abstract

This study aims to examine poverty in Thailand by identifying determining factors of poverty incidence and dynamics from both monetary and non-monetary perspectives. It also explores the voices of the poor and analyzes the role of social capital in poverty reduction. Quantitative analysis utilizes the SES panel dataset from 2007, 2012, and 2017, comprising 3,567 households, while quantitative analysis involves in-depth interviews conducted with 90 households in Mae Hong Son, Buri Ram, and Pattani, using the life-history approach.

The findings show positive impact of remittances and increasing average years of schooling on poverty status. The vulnerability of households relying solely on agricultural income streams is highlighted. In addition, the life-history approach reveals the broad nature of poverty in Thai society, encompassing not only a lack of material wealth but also opportunities and access to essential life components. Together with regression results, the important role of social capital, namely, remittances and borrowings from external household members or relatives as well as a close community network is exemplified.

Policy recommendations include implementing measures to support remittances and long-term investments in human capital. This study suggests implementing insurance programs for agricultural-income households to protect against weather-related adversities. Furthermore, decentralizing budgets and authorities to local governments is recommended, empowering them to implement grassroots-level poverty action plans.