The Effect of Household Socio-Economic Factors on Household Debt in Thailand
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Abstract
This article aimed to study household socio-economic factors affecting household debt in Thailand. The study analyzed 21,273 indebted households from the National Statistical Office's 2019 Household Socio-Economic Survey. The mean regression was used to study the effect of household socio-economic factors on household debt at the average debt level. Quantile regression was also applied at 0.1 and 0.9 levels to study the impact of determinants on household debt with both below and above the average debt levels. The results of the study found that household income and household expenditure play an important role in determining household debt at all debt levels. Households with higher incomes and expenditures tend to build more debt, indicating that higher-income households have the potential to incur more debt because they can pay principal and interest as well as having the opportunity to easily access credit. The higher the age of the head of household and the higher the number of household members will increase more debt. Also, a male household head is more likely to be in debt than a female household head. The study also found that married household heads are more in debt than heads of households that are single, widowed or divorced. Educated heads of households are more in debt compared to uneducated heads. Households of manager workers and self-employed households incur more debt than non-employed households. Household location only affects households with low levels of debt.
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References
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