Thomas Soseco


Households should small and but financially strong, especially to deal with a crisis where most families face a reduction in income but relatively constant expenditure. To maintain the standard of living, they need a buffer, measured from net wealth, i.e. total value of assets deducted by debts. There is no justification for how small the family size should be. For most households, higher net wealth is achieved when they have smaller household size, while only the poorest and richest households can get benefits from additional household members. However, we should also aware of the pseudo-increase of net wealth, i.e. households obtain an increasing net wealth because of additional household members but unable to push them to higher decile.


wellbeing; total fertility rate; household’s size; net wealth; debts

Full Text:



Birdsall, N. (2010). The (Indispensable) Middle Class in Developing Countries; or, The Rich and the Rest, Not the Poor and the Rest (Working Papers 207). Center for Global Development

Brown, S., & Gray, D. (2014). Household Finances and Well-Being:An Empirical Analysis of Comparison Effects (IZA DP No. 8530). Forschungsinstitut zur Zukunft der Arbeit Institute for the Study of Labor

Clementi, F., Dabalen, A. L., Molini, V., & Schettino, F. (2018). We Forgot the Middle Class!: Inequality Underestimation in a Changing Sub-Saharan Africa. SSRN. https://ssrn.com/abstract=3243750

Clementi, F., Gallegati, M., & Kaniadakis, G. (2012). A generalized statistical model for the size distribution of wealth Journal of Statistical Mechanics: Theory and Experiment 2012(12), 1-25. https://doi.org/10.1088/1742-5468/2012/12/P12006

Filandri, M., & Olagnero, M. (2014). Housing Inequality and Social Class in Europe. Housing Studies, 29(7), 977-993. https://doi.org/10.1080/02673037.2014.925096

Filmer, D., & Pritchett, L. H. (2001). Estimating Wealth Effects without Expenditure Data-or Tears: An Application to Educational Enrollments in States of India. Demography, 38(1), 115-132. https://doi.org/10.2307/3088292

Fitzsimmons, V., & Leach, L. J. (1994). Net Worth Change: Beginning and Expanding Life Cycle Stages. Journal of Financial Counseling and Planning 5(1)

Friedman, M. (1957). A Theory of the Consumption Function: National Bureau of Economic Research, Inc.

Gibson, L. (2017). Towards a more equal Indonesia. OXFAM International. https://oxf.am/2FK0Pae

McKenzie, D. J. (2005). Measuring inequality with asset indicators. Journal of Population Economics, 18(2), 229-260. https://doi.org/10.1007/s00148-005-0224-7

Oliver, M. L., & Shapiro, T. M. (1990). Wealth of a Nation: A Reassessment of Asset Inequality in America Shows at Least One Third of Households Are Asset-Poor. The American Journal of Economics and Sociology, 49(2), 129-151.

Ostry, J. D., & Berg, A. (2011). Inequality and Unsustainable Growth; Two Sides of the Same Coin? : International Monetary Fund

Oxfam. (2018). Reward work, not wealth: To end the inequality Crisis, we must build an economy for ordinary working People, not the rich and powerful. [Oxfam Briefing Paper]

Parkin, F. (1971). Class inequality and political order. London: MacGibbon & Kee

Rothwell, D., & Robson, J. (2018). The prevalence and composition of asset poverty in Canada: 1999, 2005, and 2012. International Journal of Social Welfare, 27(1), 17-27. https://doi.org/10.1111/ijsw.12275

Senik, C. (2014). Wealth and happiness. Oxford Review of Economic Policy, 30(1), 92-108. httpd://doi.org/10.1093/oxrep/gru004

Soseco, T. (2010). Perkiraan Ketimpangan Distribusi Pendapatan di Indonesia dengan Indeks Theil. Jurnal Ekonomi dan Studi Pembangunan, 2, 110-116.

_______. (2018). The Composition and Distribution of Household Wealth in Indonesia. Jurnal Ekonomi dan Studi Pembangunan, 10(2), 153-167.

_______ (2019). Application of Dagum Type III Model to Measure Net Wealth Inequality in Indonesia Paper presented at the Asian and Australasian Society of Labour Economics 2019 Conference, Singapore

Wah, C. K. (2000). Prosperity or inequality: deconstructing the myth of home ownership in Hong Kong. Housing Studies, 15(1), 28-43. https://doi.org/10.1080/02673030082450

Wakita, S., Fitzsimmons, V. S., & Liao, T. F. (2000). Wealth: Determinants of Savings Net Worth and Housing Net Worth of Pre-Retired Households. Journal of Family and Economic Issues, 21(4), 387-418. https://doi.org/10.1023/a:1026432705410

Ward, P. (2013). Measuring the Level and Inequality of Wealth: An Application to China. Review of Income and Wealth, 60(4), 613-635. https://doi.org/10.1111/roiw.12063

Wilkinson, R., & Pickett, K. (2009). The Spirit Level: Why Greater Equality Makes Societies Stronger. New York: Bloomsburry Press.

Williams, F. L., & Manning, S. L. (1972). Net Worth Change of Selected Families 1. Family and Consumer Sciences Research Journal, 1(2), 104-113. https://doi.org/10.1177/1077727x7200100205

DOI: https://doi.org/10.14203/jki.v0i0.577

Copyright (c) 2020 Jurnal Kependudukan Indonesia

Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.

Research Center for Population, Indonesian Institute of Sciences

Widya Graha Building, 7th and 10th floors
Jl. Jenderal Gatot Subroto 10 Jakarta Selatan, Telp (021) 5221687
Website: http:/kependudukan.lipi.go.id;
E-Journal: http://ejurnal.kependudukan.lipi.go.id
Pustaka: http://pustaka.kependudukan.lipi.go.id