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Vulnerability of households to health shocks: an Indonesian study

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  • Nguyen Thi Nhu Nguyet
  • Eiji Mangyo

Abstract

We examine the effect of illness and injury shocks on work hours and household consumption in Indonesia. Using indices of activities of daily living to measure health shocks, we find that both labour hours and household consumption are influenced by health shocks to household heads. Further, farm households seem to be more seriously affected than non-farm households by health shocks. However, the magnitude of the health effect on household consumption is small, implying that even farm households are well protected on average by the presence of formal and informal risk-coping mechanisms.

Suggested Citation

  • Nguyen Thi Nhu Nguyet & Eiji Mangyo, 2010. "Vulnerability of households to health shocks: an Indonesian study," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 46(2), pages 213-235.
    • Handle: RePEc:taf:bindes:v:46:y:2010:i:2:p:213-235
    DOI: 10.1080/00074918.2010.486108
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    References listed on IDEAS

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    1. Paul Gertler & David I. Levine & Enrico Moretti, 2009. "Do microfinance programs help families insure consumption against illness?," Health Economics, John Wiley & Sons, Ltd., vol. 18(3), pages 257-273, March.
    2. Lindelow, Magnus & Wagstaff, Adam, 2005. "Health shocks in China : are the poor and uninsured less protected ?," Policy Research Working Paper Series 3740, The World Bank.
    3. Wenefrida Dwi Widyanti & Asep Suryahadi & Sudarno Sumarto & Athia Yumna, "undated". "The Relationship between Chronic Poverty and Household Dynamics: Evidence from Indonesia," Working Papers 339, Publications Department.
    4. Christiaensen, Luc & Hoffmann, Vivian & Sarris, Alexander, 2007. "Gauging the welfare effects of shocks in rural Tanzania," Policy Research Working Paper Series 4406, The World Bank.
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    Cited by:

    1. Chhay, Panharoth & Rahut, Dil, 2022. "Health Shocks and Overindebtedness: A Panel Data Analysis from Rural Viet Nam," ADBI Working Papers 1311, Asian Development Bank Institute.
    2. Arjun S. Bedi & Sparrow, R.A., 2014. "Sickness and death," ISS Working Papers - General Series 51366, International Institute of Social Studies of Erasmus University Rotterdam (ISS), The Hague.
    3. Lau, Siew Yee & Parinduri, Rasyad & Lee, Yoong Hon, 2019. "Does Social Health Insurance Help Owners of Micro- and Small Firms Cope with Family Hardships? Evidence from Indonesia," MPRA Paper 95295, University Library of Munich, Germany.
    4. Khan, Farid & Bedi, Arjun S. & Sparrow, Robert, 2015. "Sickness and Death: Economic Consequences and Coping Strategies of the Urban Poor in Bangladesh," World Development, Elsevier, vol. 72(C), pages 255-266.
    5. Robert Sparrow & Ellen Van de Poel & Gracia Hadiwidjaja & Athia Yumna & Nila Warda & Asep Suryahadi, 2014. "Coping With The Economic Consequences Of Ill Health In Indonesia," Health Economics, John Wiley & Sons, Ltd., vol. 23(6), pages 719-728, June.
    6. Robert Sparrow & Ellen Van de Poel & Gracia Hadiwidjaja & Athia Yumna & Nila Warda & Asep Suryahadi, "undated". "Financial Consequences of Ill Health and Informal Coping Mechanisms in Indonesia," Working Papers 296, Publications Department.

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