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Household Vulnerability to Income Shocks in Emerging and Developing Asia: the Case of Cambodia, Nepal and Vietnam

Author

Listed:
  • Alessia De Stefani
  • Athene Laws
  • Alexandre Sollaci

Abstract

We leverage survey data from emerging and developing Asia to highlight different aspects of household vulnerability to income shocks arising from the Covid-19 pandemic: occupation in Cambodia, self-insurance mechanisms in Nepal, and financial leverage in Vietnam. Occupation and ex-ante income levels emerge as the main drivers of vulnerability. We estimate that the pandemic could have placed an additional 6 to 9 percent of the population of each country in a vulnerable position, with the impact concentrated on urban, informal, and service sector workers. Government intervention and financial access emerge as key resilience-enhancing mechanisms.

Suggested Citation

  • Alessia De Stefani & Athene Laws & Alexandre Sollaci, 2022. "Household Vulnerability to Income Shocks in Emerging and Developing Asia: the Case of Cambodia, Nepal and Vietnam," IMF Working Papers 2022/064, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2022/064
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    Keywords

    Income shocks; Informality; Covid-19; Developing Asia; household vulnerability; appendix B; labor market vulnerability; shock outcome; cash transfer; Income; Consumption; Loans; Asia and Pacific;
    All these keywords.

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