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Health shocks in Sub-Saharan Africa: are the poor and uninsured households more vulnerable?

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  • Esso-Hanam Atake

    (University of Lome)

Abstract

Background In developing countries, health shock is one of the most common idiosyncratic income shock and the main reason why households fall into poverty. Empirical research has shown that in these countries, households are unable to access formal insurance markets in order to insure their consumption against health shocks. Thus, in this study, are the poor and uninsured households more vulnerable from health shocks? We investigate the factors that lead to welfare loss from health shocks, and how to break the vulnerability from health shocks in three Sub-Saharan Africa (SSA) countries, namely, Burkina Faso, Niger and Togo. Methods This study focusses on 1597 households in Burkina Faso, 1342 households in Niger and 930 households in Togo. A three-step Feasible Generalized Least Squares (FGLS) method was used to estimate vulnerability to poverty and to model the effects of health shocks on vulnerability to poverty. Results The estimates of vulnerability show that about 39.04%, 33.69%, and 69.03% of households are vulnerable to poverty, in Burkina Faso, Niger, and Togo respectively. Both interaction variables, ‘health shocks and wealth’ and ‘health shocks and access to health insurance’ had a significant negative effect on reducing household’s vulnerability to poverty. Poverty is the leading cause of economic loss from health shocks as the poorer cannot afford the purchase of sufficient quantities of quality food, preventive and curative health care, and education. We found that lack of health insurance coverage had a significant effect by increasing the incidence of welfare loss from health shocks. Moreover, household size, type of health care used, gender, education and age of the head of the household as well as the characteristics of housing affect vulnerability to poverty. Conclusion Our findings suggest that for the poor households, reduction of user fees of health care at the point of service or expansion of health insurance could mitigate vulnerability to poverty. Other challenges—birth control policy, adequate sanitation facilities and a universal basic education program—need to be addressed in order to reduce significantly the effects of health shocks on vulnerability to poverty in SSA.

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  • Esso-Hanam Atake, 2018. "Health shocks in Sub-Saharan Africa: are the poor and uninsured households more vulnerable?," Health Economics Review, Springer, vol. 8(1), pages 1-13, December.
    • Handle: RePEc:spr:hecrev:v:8:y:2018:i:1:d:10.1186_s13561-018-0210-x
    DOI: 10.1186/s13561-018-0210-x
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    3. Séverin Aimé Blanchard Ouadika, 2020. "Health shocks and vulnerability to poverty in Congo," Palgrave Communications, Palgrave Macmillan, vol. 7(1), pages 1-8, December.
    4. Bekhzod EGAMBERDIEV, 2021. "Household Impact Of The Covid-19 Pandemic From A Development Economics Perspective - A Review," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(1), pages 15-30, June.
    5. Raymond Elikplim Kofinti & Josephine Baako-Amponsah & Prince Danso, 2023. "Household National Health Insurance Subscription and Learning Outcomes of Poor Children in Ghana," Child Indicators Research, Springer;The International Society of Child Indicators (ISCI), vol. 16(1), pages 357-394, February.
    6. Amina Ika Micah, 2022. "Three essays on access to credit and financial shock in Nigeria," Economics PhD Theses 0422, Department of Economics, University of Sussex Business School.
    7. Davidmac O. Ekeocha & Chimere O. Iheonu, 2021. "Household‐level poverty, consumption poverty thresholds, income inequality and quality of lives in sub‐Saharan Africa," African Development Review, African Development Bank, vol. 33(2), pages 234-248, June.
    8. Qianqian Zhang & Tao Li & Xiongwei Tan & Jianzhong Yan, 2023. "Protecting Poor Rural Households from Health Shocks: Poverty Alleviation Practices in Chongqing, China," Land, MDPI, vol. 12(5), pages 1-22, April.
    9. Yao-bin Wang & Jin-hang Zhao & Rong Yao & Rui-tao Zhao & Ying Li, 2022. "Risk of Poverty Returning to the Tibetan Area of Gansu Province in China," Sustainability, MDPI, vol. 14(18), pages 1-21, September.
    10. Nguyen, Trung Thanh & Do, Truong Lam & Halkos, George & Wilson, Clevo, 2020. "Health shocks and natural resource extraction: A Cambodian case study," Ecological Economics, Elsevier, vol. 169(C).
    11. Marther W. Ngigi & Ulrike Mueller & Regina Birner, 2021. "Livestock Diversification for Improved Resilience and Welfare Outcomes Under Climate Risks in Kenya," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 33(6), pages 1625-1648, December.
    12. Olukemi I. Lawanson & Dominic Ikoh Umar, 2021. "The life expectancy–economic growth nexus in Nigeria: the role of poverty reduction," SN Business & Economics, Springer, vol. 1(10), pages 1-26, October.

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