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Productivity effects of dengue in Brazil

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  • Bhalotra, Sonia
  • Rocha, Rudi
  • Facchini, Gabriel
  • Menezes, Aline

Abstract

Although understanding the role of health in driving labor market outcomes is a matter of great importance, it has proven difficult to isolate this effect due to empirical challenges and a lack of compelling sources of identification. We obtain causal estimates of the effect of health on income and welfare dependency through two different channels: a negative health shock (dengue outbreak) and a positive health shock (opening of a health-care facility). To do this, we rely on instrumental variables and difference-in-difference methods, as well as on novel datasets. We find that dengue outbreaks lower the average working hours and income. This effect is particularly high for low-income individuals, but conditional cash transfer programs can insulate them from this shock. On the other hand, the opening of a new health-care facility in a families catchment area rises family per capita income and employment. All together, this evidence suggest that health shocks are an important part of income, poverty and welfare dependency.

Suggested Citation

  • Bhalotra, Sonia & Rocha, Rudi & Facchini, Gabriel & Menezes, Aline, 2019. "Productivity effects of dengue in Brazil," ISER Working Paper Series 2019-04, Institute for Social and Economic Research.
    • Handle: RePEc:ese:iserwp:2019-04
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    Cited by:

    1. Viviane Sanfelice, 2022. "Mosquito‐borne disease and newborn health," Health Economics, John Wiley & Sons, Ltd., vol. 31(1), pages 73-93, January.

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