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Taking Cover: Human Capital Accumulation in the Presence of Shocks and Health Insurance

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  • Paulino Font-Gilabert

Abstract

Using the expansion of a large-scale health-insurance program in Mexico and variation in local rainfall levels, this study explores whether the program-induced increase in healthcare coverage protected the cognitive attainment of primary school children in the event of adverse rainfall shocks. Results show that the universalization of healthcare mitigated the negative effect of atypical rainfall on test scores, particularly in more marginalized and rural areas. An analysis of the mechanisms at play shows a reduced incidence of sickness among children, lower demand for their time, and higher stability in household consumption among program-eligible families exposed to rainfall shocks.

Suggested Citation

  • Paulino Font-Gilabert, 2023. "Taking Cover: Human Capital Accumulation in the Presence of Shocks and Health Insurance," The World Bank Economic Review, World Bank, vol. 37(3), pages 437-459.
    • Handle: RePEc:oup:wbecrv:v:37:y:2023:i:3:p:437-459.
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    References listed on IDEAS

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    1. Liu, Kai, 2016. "Insuring against health shocks: Health insurance and household choices," Journal of Health Economics, Elsevier, vol. 46(C), pages 16-32.
    2. Mariano Bosch & Raymundo M. Campos-Vazquez, 2014. "The Trade-Offs of Welfare Policies in Labor Markets with Informal Jobs: The Case of the "Seguro Popular" Program in Mexico," American Economic Journal: Economic Policy, American Economic Association, vol. 6(4), pages 71-99, November.
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    4. Duque, Valentina & Rosales-Rueda, Maria & Sanchez, Fabio, 2019. "How Do Early-Life Shocks Interact with Subsequent Human Capital Investments? Evidence from Administrative Data," Working Papers 2019-17, University of Sydney, School of Economics.
    5. Gabriella Conti & Rita Ginja, 2023. "Who Benefits from Free Health Insurance?: Evidence from Mexico," Journal of Human Resources, University of Wisconsin Press, vol. 58(1), pages 146-182.
    6. Gunnsteinsson, Snaebjorn & Molina, Teresa & Adhvaryu, Achyuta & Christian, Parul & Labrique, Alain & Sugimoto, Jonathan & Shamim, Abu Ahmed & West, Keith P., 2022. "Protecting infants from natural disasters: The case of vitamin A supplementation and a tornado in Bangladesh," Journal of Development Economics, Elsevier, vol. 158(C).
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