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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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    File URL: http://hdl.handle.net/10.1093/wber/lhad008
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    References listed on IDEAS

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    1. 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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    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. Garg, Teevrat & Jagnani, Maulik & Taraz, Vis P., "undated". "Human Capital Costs of Climate Change: Evidence from Test Scores in India," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258018, Agricultural and Applied Economics Association.
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