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<p>Using household-level data in the Philippines, this paper employed an extended version of the difference-in-differences (DID) method to quantify the separate impacts of COVID-19 cases and lockdown measures on household expenditure. Results show that while the pandemic significantly reduced total household expenditure, spending on food, health, and services that support the remote working and learning set-up increased. Further, the consistent reduction of spending caused by the full lockdown policy supports that households’ decision in spending is subject to mobility restrictions rather than to the threat of being infected by the virus. For an average family size of 4, it was estimated that one additional day of full lockdown decreases annual total household expenditure by PHP 1292.90 (around 23.00 USD) on average. Using a 30-day full lockdown scenario, the drop in spending is equivalent to PHP 38,787.00 (USD 693), which is larger than the monthly poverty threshold for a family of five (PHP 12,030.00) in the Philippines (PSA, <CitationRef CitationID="CR52">2021</CitationRef>). High-income households have the largest drop in total household spending due to full lockdown but tend to increase spending in non-immediate needs during a partial lockdown. Meanwhile, the significant increase in spending for immediate needs such as health, communication, and rent mainly came from rural and low-income households. Policy insights can be drawn from this paper in targeting which areas, for whom, and what type of intervention must be done during similar economic shocks, not only during a pandemic but also in times of disaster (earthquakes, typhoons, drought, etc.).</p>

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Examining changes in spending during the COVID-19 pandemic: evidence from household level data in the Philippines

  • 期刊论文

  • 发表日期：

    2025年1月8日

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  • Gay Margarett A. Gange,
  • Chun Yee Wong

摘要

Using household-level data in the Philippines, this paper employed an extended version of the difference-in-differences (DID) method to quantify the separate impacts of COVID-19 cases and lockdown measures on household expenditure. Results show that while the pandemic significantly reduced total household expenditure, spending on food, health, and services that support the remote working and learning set-up increased. Further, the consistent reduction of spending caused by the full lockdown policy supports that households’ decision in spending is subject to mobility restrictions rather than to the threat of being infected by the virus. For an average family size of 4, it was estimated that one additional day of full lockdown decreases annual total household expenditure by PHP 1292.90 (around 23.00 USD) on average. Using a 30-day full lockdown scenario, the drop in spending is equivalent to PHP 38,787.00 (USD 693), which is larger than the monthly poverty threshold for a family of five (PHP 12,030.00) in the Philippines (PSA, 2021). High-income households have the largest drop in total household spending due to full lockdown but tend to increase spending in non-immediate needs during a partial lockdown. Meanwhile, the significant increase in spending for immediate needs such as health, communication, and rent mainly came from rural and low-income households. Policy insights can be drawn from this paper in targeting which areas, for whom, and what type of intervention must be done during similar economic shocks, not only during a pandemic but also in times of disaster (earthquakes, typhoons, drought, etc.).