Natural disasters, self-insurance and human capital investment : evidence from Bangladesh, Ethiopia and Malawi
Abstract
This paper examines the impacts of disasters on dynamic human capital production using panel data from Bangladesh, Ethiopia, and Malawi. The empirical results show that the accumulation of biological human capital prior to disasters helps children maintain investments in the post-disaster period. Biological human capital formed in early childhood (long-term nutritional status) plays a role of insurance with resilience to disasters by protecting schooling investment and outcomes, although disasters have negative impacts on investment. In Bangladesh, children with more biological human capital are less affected by the adverse effects of floods, and the rate of investment increases with the initial human capital stock in the post-disaster recovery process. In Ethiopia and Malawi, where droughts are rather frequent, exposure to highly frequent droughts in some cases reduces schooling investment but the negative impacts are larger among children embodying less biological human capital. Asset holdings prior to the disasters, especially the household's stock of intellectual human capital, also helps maintain schooling investments at least to the same degree as the stock of human capital accumulated in children prior to the disasters.Download Info
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Paper provided by The World Bank in its series Policy Research Working Paper Series with number 4910.Length:
Date of creation: 01 Apr 2009
Date of revision:
Handle: RePEc:wbk:wbrwps:4910
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Related research
Keywords: Natural Disasters; Hazard Risk Management; Access to Finance; Economic Theory&Research; Health Monitoring&Evaluation;Other versions of this item:
- Yamauchi, Futoshi & Yohannes, Yisehac & Quisumbing, Agnes R., 2009. "Natural disasters, self-Insurance, and human capital investment: Evidence from Bangladesh, Ethiopia, and Malawi," IFPRI discussion papers 881, International Food Policy Research Institute (IFPRI).
- NEP-AFR-2009-05-16 (Africa)
- NEP-ALL-2009-05-16 (All new papers)
- NEP-CWA-2009-05-16 (Central & Western Asia)
- NEP-DEV-2009-05-16 (Development)
- NEP-HRM-2009-05-16 (Human Capital & Human Resource Management)
- NEP-IAS-2009-05-16 (Insurance Economics)
References
References listed on IDEASPlease 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.:
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Citations
Blog mentions
As 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
Cited by:
- 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.
- Lohse, Tim & Julio R. Robledo & Ulrich Schmidt, 2006. "Self-Insurance and Self-Protection as Public Goods," Diskussionspapiere der Wirtschaftswissenschaftlichen Fakultät der Leibniz Universität Hannover dp-354, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.
- Ulrich Schmidt, 2010. "Self-Insurance and Self-Protection as Public Goods," Kiel Working Papers 1613, Kiel Institute for the World Economy.
- 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.
- 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).
- 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).
- Dang, Duc Anh, 2012. "On the sources of risk preferences in rural Vietnam," MPRA Paper 38058, University Library of Munich, Germany.
- Felfe, Christina & Deuchert. Eva, 2011. "The tempest: Using a natural disaster to evaluate the link between wealth and child development," Economics Working Paper Series 1146, University of St. Gallen, School of Economics and Political Science.
- Dang, Duc Anh, 2012. "On the sources of risk preferences in rural Vietnam," MPRA Paper 38738, University Library of Munich, Germany.
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