Inequality has been usually mentioned in term of income inequality to elevate people's well-being. This research examined another dimension of inequality, which is debt inequality. Among people who have the same level of income, some of them have high debt while some people have not. Therefore, we should not neglect this aspect because indebtedness makes them vulnerable to unstable life. This research mainly used household data, known as the Socio-Economic Survey, compiled by the National Statistical Office of Thailand. To estimate the debt inequality, people were classified according to the level of income, and the distribution of debt was estimated for each income group. The results revealed that there was debt inequality within the same level of income group. Low debt inequality was not always good because it means that households have debt equally. Besides, it can be also positively interpreted that they have small amount of debt similarly. This depends on average household debt of each group. High debt inequality can be implied that there are large differences between debts of each household in the same group, i.e., there were some households with low debt or even no debt despite some households having high debt.
Narissara Charoenphandhu, Faculty of Economics, Rangsit University, Thailand
Stream: Economics and Management
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