Effects of World Financial Crisis on Food Consumption Spending Among Households in Jamaica

Abstract

The world financial crisis of 2008/2009 derailed macro-economic stability in most countries, triggering a global recession and wide spread food crises. Using data from the Jamaica Survey of Living Conditions, this study examines how the recession, as a macro condition, accounts for differences in Jamaican household food consumption before (2007) and during the recession (2009), and compares the impact of micro characteristics such as households’ income, sex of household head, household size and area of residence on food consumption between both periods. The results indicate that income level and area of residence are consistently significant determinants of food consumption in Jamaica. In addition, the findings indicate that food consumption expenditure in all income categories remained basically unchanged between 2007 and 2009. Surprisingly however, female-headed households were found to spend significantly more on food consumption than male-headed households during the recession, which might be attributable to a combination of factors including the possibility that female-headed households accessed more social welfare and remittances than male headed households during the recession.

Keywords: Recession, Household food consumption, Jamaica