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Transitory Shocks, Permanent Effects: Impact of the Economic Crisis on the Well-Being of Households in Latin America and The Caribbean


  • Almudena Fernández

    (United Nations Development Programme)

  • Luis F. López-Calva

    (United Nations Development Programme)


This paper aims to measure the impact of the global crisis on social indicators child health, mortality, education and poverty in five Latin American countries. The results suggest that economic downturns have a negative impact on child mortality, child health, and both overall and child poverty. Child poverty increases at higher rates than overall poverty. Results on education indicators are ambiguous. The paper concludes that an integrated social protection policy that protects the income of poor households and that maintains or expands basic health services during economic downturns are of critical importance to prevent transitory shock from having permanent effects on the well-being of households.

Suggested Citation

  • Almudena Fernández & Luis F. López-Calva, 2010. "Transitory Shocks, Permanent Effects: Impact of the Economic Crisis on the Well-Being of Households in Latin America and The Caribbean," Estudios Económicos, El Colegio de México, Centro de Estudios Económicos, vol. 25(1), pages 3-35.
  • Handle: RePEc:emx:esteco:v:25:y:2010:i:1:p:3-35

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    References listed on IDEAS

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    Cited by:

    1. Balcazar Salazar,Carlos Felipe, 2015. "Long-run effects of democracy on income inequality : evidence from repeated cross-sections," Policy Research Working Paper Series 7153, The World Bank.

    More about this item


    human development; economic crisis; household well-being; poverty; Latin America;

    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • D60 - Microeconomics - - Welfare Economics - - - General


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