Household characteristics of indebted households with members working in the public and private sector

Abstract

The research analyzed the influence of different household characteristics on household debt, including mortgage debt. Using data from Thailand’s Household Socio-Economic Survey in 2019 and 2021, the study implemented a logit model to identify household characteristics with significant impact on household debt. By analyzing data from two different periods that varied in social and economic contexts, the study highlighted critical factors that influenced household debt demand. The datasets were divided into three categories according to household work status. The categories include households with at least one public sector worker, households with no public sector workers but at least one private sector worker, and all other households. The study found that, in 2019 and 2021, different household characteristics, such as work status, location, and education attainment, influenced the households’ likelihood of having debt at varying levels of significance and direction. The household work status was a significant and positive factor regarding the probability of having household debt as well as household mortgage demand in all categories of household work statuses. When looking at other factors, the study discovered that households’ location, number of children, average household compensation, government loan schemes, and medical welfare services significantly increased the probability of household debt in both years, while the highest household education attainment level significantly decreased the probability of household debt. At the same time, the study highlighted that number of children, average household compensation, and medical welfare services significantly increased household mortgage demand. However, households’ location, highest household education attainment level, and government loan schemes decreased the likelihood of household mortgages significantly. In addition, household assets had a significant influence on the likelihood of household debt and household mortgage, but this differed by factor and year.