lower at 65 percent among those in middle- and high-consumption households in early 2023. Furthermore, households in the poorest consumption quintiles reported higher exposure to natural hazards in 2022 and 2023 compared to that reported at the end of 2021.

Households in the two poorer quintiles reported greater vulnerability to other types of natural hazards in 2022 and 2023 compared to middle- and high-consumption households. The gap between households in these two categories of consumption quintiles that reported a threat from heat waves, hurricanes, extreme rainfall, and drought widened by the end of 2022 and early 2023 and became statistically significant (Table 1). By this period, households in the two bottom quintiles were more likely to be threatened by these natural hazards than those in the three upper remaining quintiles, reporting a statistically significant difference of at least 6 percentage points. Although, by the end of 2022, the proportion of households that reported feeling threatened by severe storms and floods decreased, this change was higher for middle- and high-consumption households, and the gap widened by about 10 percentage points, remaining so until 2023.

**Table 1: Self-reporting of the types of natural hazards threatening households by consumption quintile groups (2021-2023)**

|||**2021**|||**2022**|||**2023**||
|---|---|---|---|---|---|---|---|---|---|
|Type of hazard|Bottom 40<br>percent<br>(mean)|Top 60<br>percent<br>(mean)|Difference|Bottom 40<br>percent<br>(mean)|Top 60<br>percent<br>(mean)|Difference|Bottom 40<br>percent<br>(mean)|Top 60<br>percent<br>(mean)|Difference|
|Heat waves|0.5779|0.5821|-.0042|.6033|.5645|.0388|.6880|.6278|.0602**|
|Tropical cyclones/Hurricanes|0.6157|0.5836|.0321|.6442|.4760|.1682***|.6479|.4859|.1620***|
|Extreme rainfall|0.5876|0.5456|.0420|.5690|.4134|.1555***|.5978|.4089|.1888***|
|Drought|0.5444|0.5224|.0219|.5627|.4219|.1408***|.7432|.5970|.1461***|
|Severe storms|0.4359|0.3805|.0554*|.3981|.2794|.1187***|.4347|.3148|.1199***|
|Floods|0.4144|0.3593|.0550*|.3938|.2971|.0967***|.4166|.3248|.0918***|
|Earthquake|0.2511|0.1700|.0811***|.7027|.6435|.0593**|.7497|.6501|.0996***|
|Wildfires|0.2360|0.1699|.0660**|.1771|.1106|.0664***|.2843|.1759|.1085***|
|Tsunami|0.1950|0.1522|.0427*|.3001|.2390|.0610**|.3525|.3200|.0326|
|Landslides|0.2164|0.1503|.0661***|.2595|.2038|.0557**|.3334|.2362|.0972***|
|Storm surges|0.1411|0.0975|.0436**|.1116|.0688|.0428**|.1522|.1220|.0302|
|Other|0.0337|0.0326|.0011|.0653|.0938|-.0285|.0864|.0337|.0527*|

Note: 1) Tests of significance with robust standard errors comparing means between groups are reported *** p<0.01, ** p<0.05, * p<0.1. 2) Bottom 40 percent refers to the bottom first two quintiles, while the Top 60 percent refers to the remaining upper three quintiles. 3) Results for 2021 are from the sub-sample of 1,487 households that were panel and for which consumption quintiles could be estimated. 4) Results for 2022 are from the 1,529 observations for which income quintiles could be assigned. 5) Results for 2023 are from entire sample of wave 4. See the methodological footnote above on the creation of consumption quintiles.

Rural households are more exposed to natural hazard than urban households, and this is exacerbated for rural households in the lowest quintiles. Urban households in the middle- and high-consumption households are in lees risk for natural hazards (Table 5, appendix A1). In this context, comparing the 5