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Impacts of COVID-19 on Households in ASEAN Countries and Their Implications for Human Capital Development

Author

Listed:
  • Morgan, Peter J.

    (Asian Development Bank Institute)

  • Trinh, Long Q.

    (Asian Development Bank Institute)

Abstract

The outbreak of the COVID-19 virus and the resulting falls in demand due both to uncertainty and policy interventions such as lockdowns, “social distancing,” and travel restrictions are having a severe impact on Asian economies and hence on Asian households. These negative impacts come through a variety of channels, including loss of employment or reduced working hours, loss of sales and income of a household business, inability to travel to work, increased need to stay at home to look after children or sick household members, higher prices and/or lack of availability of staple items, reduced access to schooling, etc. To better understand these impacts, we carried out computer-assisted telephone interviews of households in eight ADB developing member countries: Cambodia, the Lao People’s Democratic Republic, Indonesia, Malaysia, Myanmar, the Philippines, Thailand, and Viet Nam. Our empirical results suggest that various household characteristics, including household income class (before COVID-19), household demographic factors, and COVID-19-induced factors such as having at least one person who lost their job or being located in lockdown areas, all affected the likelihood of a decline in income. In all countries, having at least one person who lost their job or had reduced working time increases the likelihood of experiencing financial difficulties by 17 percentage points. About 27% of children who stopped attending school could not fully participate in online learning programs due to weak/insufficient internet connections and a lack of digital devices. Two COVID-19-related factors—having at least one person who lost their job or had working hours reduced and experiencing financial difficulties—significantly affect the intensity of online classes taken by children in an average household.

Suggested Citation

  • Morgan, Peter J. & Trinh, Long Q., 2021. "Impacts of COVID-19 on Households in ASEAN Countries and Their Implications for Human Capital Development," ADBI Working Papers 1226, Asian Development Bank Institute.
  • Handle: RePEc:ris:adbiwp:1226
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    References listed on IDEAS

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    Cited by:

    1. Rouselle F. LAVADO & Keiko NOWACKA & David A. RAITZER & Yana van der Meulen RODGERS & Joseph E. ZVEGLICH, 2022. "COVID‐19 disparities by gender and income: Evidence from the Philippines," International Labour Review, International Labour Organization, vol. 161(1), pages 107-123, March.
    2. Esther Gehrke & Friederike Lenel & Claudia Schupp, 2023. "COVID-19 Crisis, Economic Hardships, and Schooling Outcomes," Education Finance and Policy, MIT Press, vol. 18(3), pages 522-546, Summer.
    3. Azhgaliyeva, Dina & Mishra, Ranjeeta & Long, Trinh & Morgan, Peter, 2022. "Impacts of COVID-19 on Households in CAREC Countries," ADBI Working Papers 1298, Asian Development Bank Institute.
    4. Chakravorty, Bhaskar & Bhatiya, Apurav Yash & Imbert, Clément & Lohnert, Maximilian & Panda, Poonam & Rathelot, Roland, 2023. "Impact of the COVID-19 crisis on India’s rural youth: Evidence from a panel survey and an experiment," World Development, Elsevier, vol. 168(C).
    5. Santosh Mehrotra, 2022. "Can Asia Assure Social Insurance For All Its Informal Workers?," Asia-Pacific Sustainable Development Journal, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), vol. 29(2), pages 155-185, November.
    6. Lhaopadchan, Suntharee & Gerrans, Paul & Treepongkaruna, Sirimon, 2024. "Retirement savings behaviours and COVID-19: Evidence from Thailand," Pacific-Basin Finance Journal, Elsevier, vol. 85(C).
    7. Iuliia Pinkovetskaia & Diego Felipe Arbelaez Campillo & Magda Julissa Rojas Bahamon, 2022. "Households income in 2021: influence of Covid-19 pandemic," Revista Finanzas y Politica Economica, Universidad Católica de Colombia, vol. 14(2), pages 541-559, June.
    8. Pinkovetskaia Iuliia, 2022. "Impact of Covid-19 pandemic on household income: results of a survey of the economically active population," Studia Universitatis „Vasile Goldis” Arad – Economics Series, Sciendo, vol. 32(1), pages 43-57, March.
    9. Azhgaliyeva, Dina & Mishra, Ranjeeta & Long, Trinh & Morgan, Peter & Kodama, Wataru, 2022. "Impacts of COVID-19 on Households’ Business, Employment and School Education: Evidence from Household Survey in CAREC Countries," ADBI Working Papers 1335, Asian Development Bank Institute.
    10. Azhgaliyeva, Dina & Mishra, Ranjeeta & Karymshakov, Kamalbek, 2021. "Household Energy Consumption Behaviors during the COVID-19 Pandemic in Mongolia," ADBI Working Papers 1292, Asian Development Bank Institute.

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    More about this item

    Keywords

    COVID-19; ASEAN; household income; employment; consumption; household finance; education; online learning;
    All these keywords.

    JEL classification:

    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • G51 - Financial Economics - - Household Finance - - - Household Savings, Borrowing, Debt, and Wealth
    • H12 - Public Economics - - Structure and Scope of Government - - - Crisis Management
    • H84 - Public Economics - - Miscellaneous Issues - - - Disaster Aid
    • I10 - Health, Education, and Welfare - - Health - - - General
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General

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