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Insecurity and welfare

  • Marcel Fafchamps
  • Bart Minten

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.

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File URL: http://www.csae.ox.ac.uk/workingpapers/pdfs/2004-31text.pdf
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Paper provided by Centre for the Study of African Economies, University of Oxford in its series CSAE Working Paper Series with number 2004-31.

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Date of creation: 2004
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Handle: RePEc:csa:wpaper:2004-31
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