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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 endogeneity, we find a strong effect on incomes, school enrollment 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, notably schooling and health care, and in the placement of development projects. Taken together, the evidence suggest 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 University of Oxford, Department of Economics in its series Economics Series Working Papers with number WPS/2004-31.

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Date of creation: 01 Oct 2004
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Handle: RePEc:oxf:wpaper:wps/2004-31
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