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The Brazilian Bombshell? The Long-Term Impact of the 1918 Influenza Pandemic the South American Way

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  • Amanda Guimbeau
  • Nidhiya Menon
  • Aldo Musacchio

Abstract

We analyze the repercussions of the 1918 Influenza Pandemic on demographic measures, human capital formation, and productivity markers in the state of Sao Paulo, Brazil's financial center and the most populous city in South America today. Leveraging temporal and spatial variation in district-level estimates of influenza-related deaths for the period 1917-1920 combined with a unique database on socio-economic, health and productivity outcomes constructed from historical and contemporary documents for all districts in Sao Paulo, we find that the 1918 Influenza pandemic had significant negative impacts on infant mortality and sex ratios at birth in 1920 (the short-run). We find robust evidence of persistent effects on health, educational attainment and productivity more than twenty years later. Our study highlights the importance of documenting the legacy of historical shocks in understanding the development trajectories of countries over time.

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  • Amanda Guimbeau & Nidhiya Menon & Aldo Musacchio, 2020. "The Brazilian Bombshell? The Long-Term Impact of the 1918 Influenza Pandemic the South American Way," NBER Working Papers 26929, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:26929
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    3. Catalina Amuedo-Dorantes & Neeraj Kaushal & Ashley N. Muchow, 2020. "Is the Cure Worse than the Disease? County-Level Evidence from the COVID-19 Pandemic in the United States," NBER Working Papers 27759, National Bureau of Economic Research, Inc.
    4. Constantin Bürgi & Nisan Gorgulu, 2020. "Social Distancing and the Economic Impact of Covid-19 in the United States," CESifo Working Paper Series 8577, CESifo.
    5. Arthi, Vellore & Parman, John, 2021. "Disease, downturns, and wellbeing: Economic history and the long-run impacts of COVID-19," Explorations in Economic History, Elsevier, vol. 79(C).
    6. Daniel de Kadt & Johan Fourie & Jan Greyling & Elie Murard & Johannes Norling, 2021. "Correlates and Consequences of the 1918 Influenza in South Africa," South African Journal of Economics, Economic Society of South Africa, vol. 89(2), pages 173-195, June.
    7. Ilan Noy & Tomáš Uher, 2022. "Economic consequences of pre-COVID-19 epidemics: a literature review," Chapters, in: Mark Skidmore (ed.), Handbook on the Economics of Disasters, chapter 7, pages 117-133, Edward Elgar Publishing.
    8. Bertocchi, Graziella & Dimico, Arcangelo, 2020. "COVID-19, Race, and Redlining," GLO Discussion Paper Series 603, Global Labor Organization (GLO).
    9. Mitchener, Kris & Esteves, Rui & Nencka, Peter & Thomasson, Melissa, 2022. "Do Pandemics Change Healthcare? Evidence from the Great Influenza," CEPR Discussion Papers 17666, C.E.P.R. Discussion Papers.
    10. Yu Pang, 2022. "A theory of fiscal policy response to an epidemic," Health Economics, John Wiley & Sons, Ltd., vol. 31(9), pages 2050-2071, September.
    11. Daniel de Kadt & Johan Fourie & Jan Greyling & Elie Murard & Johannes Norling, 2020. "The causes and consequences of the 1918 influenza in South Africa," Working Papers 12/2020, Stellenbosch University, Department of Economics.
    12. Jappelli, Tullio & Carillo, Mario Francesco, 2020. "Pandemics and Local Economic Growth: Evidence from the Great Influenza in Italy," CEPR Discussion Papers 14849, C.E.P.R. Discussion Papers.
    13. Brian Beach & Karen Clay & Martin Saavedra, 2022. "The 1918 Influenza Pandemic and Its Lessons for COVID-19," Journal of Economic Literature, American Economic Association, vol. 60(1), pages 41-84, March.
    14. Benjamin Schneider & Hillary Vipond, 2023. "The Past and Future of Work: How History Can Inform the Age of Automation," CESifo Working Paper Series 10766, CESifo.
    15. Schneider, Benjamin & Vipond, Hillary, 2023. "The past and future of work: how history can inform the age of automation," Economic History Working Papers 119282, London School of Economics and Political Science, Department of Economic History.
    16. Yothin Jinjarak & Ilan Noy & Quy Ta, 2022. "Pandemics and Economic Growth: Evidence from the 1968 H3N2 Influenza," Economics of Disasters and Climate Change, Springer, vol. 6(1), pages 73-93, March.
    17. Harrison Hong & Neng Wang & Jinqiang Yang, 2020. "Mitigating Disaster Risks in the Age of Climate Change," NBER Working Papers 27066, National Bureau of Economic Research, Inc.
    18. Howard Bodenhorn, 2020. "Business in a Time of Spanish Influenza," NBER Working Papers 27495, National Bureau of Economic Research, Inc.
    19. Kristian S. Blickle, 2020. "Pandemics Change Cities: Municipal Spending and Voter Extremism in Germany, 1918-1933," Staff Reports 921, Federal Reserve Bank of New York.
    20. Asli Demirgüç‐Kunt & Michael Lokshin & Iván Torre, 2021. "The sooner, the better: The economic impact of non‐pharmaceutical interventions during the early stage of the COVID‐19 pandemic," Economics of Transition and Institutional Change, John Wiley & Sons, vol. 29(4), pages 551-573, October.
    21. Masato Shizume, 2022. "The Great Influenza Pandemic in Japan: Policy Responses and Socioeconomic Consequences," Discussion Paper Series DP2022-27, Research Institute for Economics & Business Administration, Kobe University, revised Oct 2022.
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    JEL classification:

    • I15 - Health, Education, and Welfare - - Health - - - Health and Economic Development
    • J10 - Labor and Demographic Economics - - Demographic Economics - - - General
    • N36 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - Latin America; Caribbean
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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