Natural disasters, self-Insurance, and human capital investment: Evidence from Bangladesh, Ethiopia, and Malawi
Abstract"This paper uses panel data from Bangladesh, Ethiopia, and Malawi to examine the impacts of disasters on dynamic human capital production. Our empirical results show that accumulation of biological human capital prior to a disaster helps children maintain investments during the post-disaster period. Biological human capital formed in early childhood (for example, good long-term nutritional status) helps insure resilience to disasters by protecting schooling investments and outcomes, even though disasters have negative impacts on the actual investments (for example, by destroying schools). In Bangladesh, children with more biological human capital are less adversely affected by flood, and the rate of investment increases with the initial human capital stock during the post-disaster recovery process. In Ethiopia and Malawi, where droughts are relatively frequent, repeated drought exposure reduces schooling investments in some cases, with larger negative impacts seen among children who embody less biological human capital. Asset holdings prior to disaster (especially intellectual human capital stock in the household) also help maintain schooling investments to at least the same degree as the stock of human capital accumulated in the children prior to the disaster. Our results suggest that as the frequency of natural disasters increases due to global warming, the insurance value of investments in child nutrition will increase. Public investments in child nutrition therefore have the potential to effectively protect long-term human capital formation among children who are vulnerable to natural disasters." from authors' abstract
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by International Food Policy Research Institute (IFPRI) in its series IFPRI discussion papers with number 881.
Date of creation: 2009
Date of revision:
Disasters; Human capital; Nutrition; Schooling; Self-insurance; Poverty reduction; Social protection; Shocks; Asset dynamics; Education;
Other versions of this item:
- Yamauchi, Futoshi & Yohannes, Yisehac & Quisumbing, Agnes, 2009. "Natural disasters, self-insurance and human capital investment : evidence from Bangladesh, Ethiopia and Malawi," Policy Research Working Paper Series 4910, The World Bank.
- NEP-AFR-2009-10-03 (Africa)
- NEP-ALL-2009-10-03 (All new papers)
- NEP-DEV-2009-10-03 (Development)
- NEP-HRM-2009-10-03 (Human Capital & Human Resource Management)
- NEP-IAS-2009-10-03 (Insurance Economics)
- NEP-LAB-2009-10-03 (Labour Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Yamauchi, Futoshi, 2006.
"Early childhood nutrition, schooling, and sibling inequality in a dynamic context: evidence from South Africa,"
203, International Food Policy Research Institute (IFPRI).
- Futoshi Yamauchi, 2008. "Early Childhood Nutrition, Schooling, and Sibling Inequality in a Dynamic Context: Evidence from South Africa," Economic Development and Cultural Change, University of Chicago Press, vol. 56, pages 657-682.
- Yamauchi, Futoshi, 2006. "Early childhood nutrition, schooling, and sibling inequality in a dynamic context: evidence from South Africa," FCND discussion papers 203, International Food Policy Research Institute (IFPRI).
- del Ninno, Carlo & Lundberg, Mattias, 2005. "Treading water: The long-term impact of the 1998 flood on nutrition in Bangladesh," Economics & Human Biology, Elsevier, vol. 3(1), pages 67-96, March.
- Alderman,Harold & Hoddinott, John & Kinsey, Bill, 2003.
"Long-term consequences of early childhood malnutrition,"
168, International Food Policy Research Institute (IFPRI).
- Harold Alderman & John Hoddinott & Bill Kinsey, 2006. "Long term consequences of early childhood malnutrition," Oxford Economic Papers, Oxford University Press, vol. 58(3), pages 450-474, July.
- Harold Alderman & John Hoddinott & Bill Kinsey, 2004. "Long Term Consequences Of Early Childhood Malnutrition," HiCN Working Papers 09, Households in Conflict Network.
- Alderman,Harold & Hoddinott, John & Kinsey, Bill, 2003. "Long-term consequences of early childhood malnutrition," FCND discussion papers 168, International Food Policy Research Institute (IFPRI).
- Hoddinott, John & Kinsey, Bill, 2001. " Child Growth in the Time of Drought," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 63(4), pages 409-36, September.
- Ilan Noy, 2007.
"The Macroeconomic Consequences of Disasters,"
200707, University of Hawaii at Manoa, Department of Economics.
- Flavio Cunha & James J. Heckman & Lance Lochner & Dimitriy V. Masterov, 2005.
"Interpreting the Evidence on Life Cycle Skill Formation,"
NBER Working Papers
11331, National Bureau of Economic Research, Inc.
- Cunha, Flavio & Heckman, James J. & Lochner, Lance, 2006. "Interpreting the Evidence on Life Cycle Skill Formation," Handbook of the Economics of Education, Elsevier.
- Cunha, Flavio & Heckman, James J. & Lochner, Lance & Masterov, Dimitriy V., 2005. "Interpreting the Evidence on Life Cycle Skill Formation," IZA Discussion Papers 1675, Institute for the Study of Labor (IZA).
- Behrman, Jere R. & Murphy, Alexis & Quisumbing, Agnes R. & Yount, Kathryn, 2009. "Are returns to mothers' human capital realized in the next generation?: The impact of mothers' intellectual human capital and long-run nutritional status on children's human capital in Guatemala," IFPRI discussion papers 850, International Food Policy Research Institute (IFPRI).
- del Ninno, Carlo & Dorosh, Paul A. & Smith, Lisa C. & Roy, Dilip K., 2001. "The 1998 floods in Bangladesh: disaster impacts, household coping strategies, and responses," Research reports 122, International Food Policy Research Institute (IFPRI).
- Pitt, Mark M & Rosenzweig, Mark R, 1990. "Estimating the Intrahousehold Incidence of Illness: Child Health and Gender-Inequality in the Allocation of Time," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 31(4), pages 969-80, November.
Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:
- How to insure against natural disasters in the absence of insurance
by Economic Logician in Economic Logic on 2009-05-18 20:15:00
- Anh Duc Dang, 2012. "On the Sources of Risk Preferences in Rural Vietnam," ANU Working Papers in Economics and Econometrics 2012-593, Australian National University, College of Business and Economics, School of Economics.
- Mueller, Valerie & Quisumbing, Agnes, 2010. "Short- and long-term effects of the 1998 Bangladesh flood on rural wages," IFPRI discussion papers 956, International Food Policy Research Institute (IFPRI).
- Lohse, Tim & Julio R. Robledo & Ulrich Schmidt, 2006.
"Self-Insurance and Self-Protection as Public Goods,"
Diskussionspapiere der Wirtschaftswissenschaftlichen FakultÃ¤t der Leibniz UniversitÃ¤t Hannover
dp-354, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.
- Tim Lohse & Julio R. Robledo & Ulrich Schmidt, 2012. "Self‐Insurance and Self‐Protection as Public Goods," Journal of Risk & Insurance, The American Risk and Insurance Association, vol. 79(1), pages 57-76, 03.
- Schmidt, Ulrich & Robledo, Julio R. & Lohse, Tim, 2007. "Self-Insurance and Self-Protection as Public Goods," Economics Working Papers 2007,16, Christian-Albrechts-University of Kiel, Department of Economics.
- Ulrich Schmidt, 2010. "Self-Insurance and Self-Protection as Public Goods," Kiel Working Papers 1613, Kiel Institute for the World Economy.
- Cameron, Lisa A. & Shah, Manisha, 2012. "Risk-Taking Behavior in the Wake of Natural Disasters," IZA Discussion Papers 6756, Institute for the Study of Labor (IZA).
- Eva Deuchert & Christina Felfe, 2013. "The Tempest: Natural Disasters, Early Shocks and Children's Short- and Long-Run Development," CESifo Working Paper Series 4168, CESifo Group Munich.
- Dang, Duc Anh, 2012. "On the sources of risk preferences in rural Vietnam," MPRA Paper 38058, University Library of Munich, Germany.
- Dang, Duc Anh, 2012. "On the sources of risk preferences in rural Vietnam," MPRA Paper 38738, University Library of Munich, Germany.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.