Stunting in rural Timor Leste: a decomposition analysis by wealth gap
Melbourne Institute Working Paper No. 06/26
Date: May 2026
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Abstract
This paper examines disparities in child stunting between the poorest and richest households in Timor-Leste using an Oaxaca–Blinder decomposition. Predicted childhood stunting rates are high overall, with 59.8% for the poorest and 37.3% for the richest households, producing a statistically significant gap of 22.5%. Differences in household and individual characteristics reduce this gap by 24.9 percentage points (pp), which is largely driven by maternal nutritional status, household food security, and variations in children’s consumption of nutrient-rich food groups, such as dairy, eggs, and meat. The unexplained component increases this gap by 2.42 pp, but is small and statistically insignificant, suggesting little variation in how these characteristics affect stunting outcomes across groups. The explained share indicates that aligning the poorest households’ characteristics with those of the richest could reduce stunting prevalence among the poor by about 42%. Findings highlight the importance of improving maternal health, dietary diversity, and access to nutrient-rich foods to address stunting and reduce socioeconomic health inequalities.
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