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Insecurity and welfare

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  • Marcel Fafchamps
  • Bart Minten

Abstract

Using original survey data, we examine how insecurity affects welfare. Correcting for unobserved heterogeneity and possible endogenecity, we find a strong effect on incomes, school enrolment and health status, but no effect on infant mortality. The effect of insecurity is robust to the inclusion of various shocks potentially affecting both welfare and insecurity. We further find a significant effect of insecurity on the provision of certain public services, notable schooling and health care, and in the placement of development projects. Taken together, the evidence suggests that insecurity is an important determinant of welfare in the country studied.

Suggested Citation

  • Marcel Fafchamps & Bart Minten, 2004. "Insecurity and welfare," CSAE Working Paper Series 2004-31, Centre for the Study of African Economies, University of Oxford.
    • Handle: RePEc:csa:wpaper:2004-31
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    Cited by:

    1. Minten, Bart & Barrett, Christopher B., 2008. "Agricultural Technology, Productivity, and Poverty in Madagascar," World Development, Elsevier, vol. 36(5), pages 797-822, May.

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    More about this item

    JEL classification:

    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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