Health Shocks and Permanent Income Loss: the Household Business Channel
This study uses an original Vietnamese panel data to provide strong evidence that microenterprises are vulnerable to health shocks affecting their operators and/or other household members. Although intra-household labour reallocation mitigates the direct labour supply decrease, large out-of- pocket health expenditures have the potential of crowding out business-related expenditure, and to significantly decrease investment. The costs associated with illness thus affect directly the household businesses that generate income for countless individuals around the developing world. These results have important implications, among which the underestimation of the positive externalities of health insurance schemes.
|Date of creation:||Oct 2016|
|Contact details of provider:|| Postal: 4, rue d'Enghien, 75010 Paris|
Phone: + 33 1 53 24 14 50
Fax: + 33 1 53 24 14 51
Web page: http://www.dial.ird.fr/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Samuel S. Lieberman & Adam Wagstaff, 2009. "Health Financing and Delivery in Vietnam : Looking Forward," World Bank Publications, The World Bank, number 2594, April.
- Audibert, Martine & Etard, Jean-Francois, 2003. "Productive Benefits after Investment in Health in Mali," Economic Development and Cultural Change, University of Chicago Press, vol. 51(3), pages 769-782, April.
- Kochar, Anjini, 2004. "Ill-health, savings and portfolio choices in developing economies," Journal of Development Economics, Elsevier, vol. 73(1), pages 257-285, February.
- Jere Behrman & Mark Rosenzweig & Andrew D. Foster, "undated".
"The Dynamics of Agricultural Production and the Calorie-Income Relationship: Evidence from Pakistan,"
_069, University of Pennsylvania.
- Behrman, Jere R. & Foster, Andrew D. & Rosenzweig, Mark R., 1997. "The dynamics of agricultural production and the calorie-income relationship: Evidence from Pakistan," Journal of Econometrics, Elsevier, vol. 77(1), pages 187-207, March.
- Strauss, J. & Thomas, D., 1995.
"Health, Nutrition and Economic development,"
95-23, RAND - Labor and Population Program.
- Paul Gertler & Jonathan Gruber, 2002.
"Insuring Consumption Against Illness,"
American Economic Review,
American Economic Association, vol. 92(1), pages 51-70, March.
- Paul Gertler & Jonathan Gruber, 1997. "Insuring Consumption Against Illness," NBER Working Papers 6035, National Bureau of Economic Research, Inc.
- Paul Gertler & Jonathan Gruber, 1998. "Insuring Consumption Against Illness," JCPR Working Papers 41, Northwestern University/University of Chicago Joint Center for Poverty Research.
- Eswaran, Mukesh & Kotwal, Ashok, 1989. "Credit as insurance in agrarian economies," Journal of Development Economics, Elsevier, vol. 31(1), pages 37-53, July.
- Fafchamps, Marcel & McKenzie, David & Quinn, Simon & Woodruff, Christopher, 2014. "Microenterprise growth and the flypaper effect: Evidence from a randomized experiment in Ghana," Journal of Development Economics, Elsevier, vol. 106(C), pages 211-226.
- Nguyen, Kim Thuy & Hai Khuat, Oanh Thi & Ma, Shuangge & Pham, Duc Cuong & Hong Khuat, Giang Thi & Ruger, Jennifer Prah, 2012. "Coping with health care expenses among poor households: Evidence from a rural commune in Vietnam," Social Science & Medicine, Elsevier, vol. 74(5), pages 724-733.
- Tibaijuka, Anna Kajumulo, 1997. "AIDS and economic welfare in peasant agriculture: Case studies from Kagabiro village, Kagera region, Tanzania," World Development, Elsevier, vol. 25(6), pages 963-975, June.
- Kim, Younhee & Yang, Bongmin, 2011. "Relationship between catastrophic health expenditures and household incomes and expenditure patterns in South Korea," Health Policy, Elsevier, vol. 100(2-3), pages 239-246, May.
- Damien de Walque, Harounan Kazianga, Mead Over, 2011. "Antiretroviral Therapy Awareness and Risky Sexual Behaviors: Evidence from Mozambique - Working Paper 239," Working Papers 239, Center for Global Development.
- Wagstaff, Adam, 2007. "The economic consequences of health shocks: Evidence from Vietnam," Journal of Health Economics, Elsevier, vol. 26(1), pages 82-100, January.
- Palmer, Michael & Mitra, Sophie & Mont, Daniel & Groce, Nora, 2015. "The impact of health insurance for children under age 6 in Vietnam: A regression discontinuity approach," Social Science & Medicine, Elsevier, vol. 145(C), pages 217-226.
- Grimm, Michael & Treibich, Carole, 2016.
"Why do some motorbike riders wear a helmet and others don’t? Evidence from Delhi, India,"
Transportation Research Part A: Policy and Practice,
Elsevier, vol. 88(C), pages 318-336.
- Grimm, Michael & Treibich, Carole, 2014. "Why Do Some Motorbike Riders Wear a Helmet and Others Don't? Evidence from Delhi, India," IZA Discussion Papers 8042, Institute for the Study of Labor (IZA).
- Schultz, T-P, 1996.
"Wage and Labor Supply effects of Illness in Cote d'Ivoire and Ghana : Instrumental Variable Estimates for Days Disabled,"
757, Yale - Economic Growth Center.
- Schultz, T. Paul & Tansel, Aysit, 1997. "Wage and labor supply effects of illness in Cote d'Ivoire and Ghana: instrumental variable estimates for days disabled," Journal of Development Economics, Elsevier, vol. 53(2), pages 251-286, August.
- Xavier Oudin & Laure Pasquier-Doumer & Thai Pham Minh & Laure Pasquier-Doumer & Dat Vu Hoang, 2014. "Adjustment of the Vietnamese Labour Market in Time of Economic fluctuations and Structural Changes," Working Papers DT/2014/04, DIAL (Développement, Institutions et Mondialisation).
- Beegle, Kathleen, 2005.
"Labor Effects of Adult Mortality in Tanzanian Households,"
Economic Development and Cultural Change,
University of Chicago Press, vol. 53(3), pages 655-683, April.
- Beegle, Kathleen, 2003. "Labor effects of adult mortality in Tanzanian households," Policy Research Working Paper Series 3062, The World Bank.
- Marcel Kerkhofs & Maarten Lindeboom, 1997. "Age related health dynamics and changes in labour market status," Health Economics, John Wiley & Sons, Ltd., vol. 6(4), pages 407-423.
- Pramila Krishnan & Stefan Dercon, 1997.
"In sickness and in health ... risk-sharing within households in rural Ethiopia,"
CSAE Working Paper Series
1997-12, Centre for the Study of African Economies, University of Oxford.
- Stefan Dercon & Pramila Krishnan, 2000. "In Sickness and in Health: Risk Sharing within Households in Rural Ethiopia," Journal of Political Economy, University of Chicago Press, vol. 108(4), pages 688-727, August.
- McIntyre, Diane & Thiede, Michael & Dahlgren, Göran & Whitehead, Margaret, 2006. "What are the economic consequences for households of illness and of paying for health care in low- and middle-income country contexts?," Social Science & Medicine, Elsevier, vol. 62(4), pages 858-865, February.
- Robert Sparrow & Ellen Van Poel & Gracia Hadiwidjaja & Athia Yumna & Nila Warda & Asep Suryahadi, 2014. "Coping With The Economic Consequences Of Ill Health In Indonesia," Health Economics, John Wiley & Sons, Ltd., vol. 23(6), pages 719-728, 06.
- Gunasekara, Fiona Imlach & Carter, Kristie & Blakely, Tony, 2011. "Change in income and change in self-rated health: Systematic review of studies using repeated measures to control for confounding bias," Social Science & Medicine, Elsevier, vol. 72(2), pages 193-201, January.
- Kim, Younhee & Yang, Bongmin, 2011. "Relationship between catastrophic health expenditures and household incomes and expenditure patterns in South Korea," Health Policy, Elsevier, vol. 100(2), pages 239-246.
- Russell, Steven & Gilson, Lucy, 2006. "Are health services protecting the livelihoods of the urban poor in Sri Lanka? Findings from two low-income areas of Colombo," Social Science & Medicine, Elsevier, vol. 63(7), pages 1732-1744, October.
- Albert A. Okunade & Chutima Suraratdecha & David A. Benson, 2010. "Determinants of Thailand household healthcare expenditure: the relevance of permanent resources and other correlates," Health Economics, John Wiley & Sons, Ltd., vol. 19(3), pages 365-376.
- Sophie Mitra & Michael Palmer & Daniel Mont & Nora Groce, 2016. "Can Households Cope with Health Shocks in Vietnam?," Health Economics, John Wiley & Sons, Ltd., vol. 25(7), pages 888-907, 07.
- Pannarunothai, Supasit & Mills, Anne, 1997. "The poor pay more: Health-related inequality in Thailand," Social Science & Medicine, Elsevier, vol. 44(12), pages 1781-1790, June.
- de Walque, Damien & Kazianga, Harounan & Over, Mead & Vaillant, Julia, 2011. "Food crisis, household welfare and HIV/AIDS treatment : evidence from Mozambique," Policy Research Working Paper Series 5522, The World Bank.
- Chirikos, Thomas N & Nestel, Gilbert, 1985. "Further Evidence on the Economic Effects of Poor Health," The Review of Economics and Statistics, MIT Press, vol. 67(1), pages 61-69, February.
- Asenso-Okyere, W. K. & Dzator, Janet A., 1997. "Household cost of seeking malaria care. A retrospective study of two districts in Ghana," Social Science & Medicine, Elsevier, vol. 45(5), pages 659-667, September.
- Sauerborn, R. & Nougtara, A. & Hien, M. & Diesfeld, H. J., 1996. "Seasonal variations of household costs of illness in Burkina Faso," Social Science & Medicine, Elsevier, vol. 43(3), pages 281-290, August.
- Benjamin, Dwayne, 1992. "Household Composition, Labor Markets, and Labor Demand: Testing for Separation in Agricultural Household Models," Econometrica, Econometric Society, vol. 60(2), pages 287-322, March.
- Lixin Cai & Kostas Mavromaras & Umut Oguzoglu, 2014. "The Effects Of Health Status And Health Shocks On Hours Worked," Health Economics, John Wiley & Sons, Ltd., vol. 23(5), pages 516-528, 05.
- Balabanova, Dina & McKee, Martin, 2002. "Understanding informal payments for health care: the example of Bulgaria," Health Policy, Elsevier, vol. 62(3), pages 243-273, December.
- Giovanna d’Adda & Markus Goldstein & Joshua Zivin & Mabel Nangami & Harsha Thirumurthy, 2009. "ARV Treatment and Time Allocation to Household Tasks: Evidence from Kenya," African Development Review, African Development Bank, vol. 21(1), pages 180-208.
- Sauerborn, R. & Adams, A. & Hien, M., 1996. "Household strategies to cope with the economic costs of illness," Social Science & Medicine, Elsevier, vol. 43(3), pages 291-301, August.
- Adam Wagstaff & Eddy van Doorslaer, 2003. "Catastrophe and impoverishment in paying for health care: with applications to Vietnam 1993-1998," Health Economics, John Wiley & Sons, Ltd., vol. 12(11), pages 921-933.
- Yamano, Takashi & Jayne, T. S., 2004. "Measuring the Impacts of Working-Age Adult Mortality on Small-Scale Farm Households in Kenya," World Development, Elsevier, vol. 32(1), pages 91-119, January.
When requesting a correction, please mention this item's handle: RePEc:dia:wpaper:dt201611. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Loic Le Pezennec)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.