Does the underlying definition of household impair programme targeting?

Abstract

Based on a unique dataset for a rural Thai village, this article investigates the relationship between the definition of household and how rural development, poverty reduction and social protection programmes are targeted. In particular, this case study simulates the effects of altering the residency criterion of the household definition, that is, the duration of residence, on household welfare statistics. We show that identification errors in development programmes are frequently caused by alternative residency criteria. We conclude that applying a multi-location definition of household may lead to more accurate government budgeting in countries characterised by frequent migration.