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Income shocks and Mortality of Low-Wage Workers: Evidence from Wage Allowances in Brazil

Author

Listed:
  • Caio Pedro Castro
  • Raphael Corbi

Abstract

This study examines the impact of income receipt on mortality among low-wage workers in Brazil, using the quasi-random timing of federal wage allowance payments. Mortality rises 9% in the week after payment, especially for causes linked to economic activity. Effects are strongest in areas with limited healthcare access and greater credit constraints. Our estimates also indicate that this increase is not a temporal shift but is directly linked to the timing of payments. These results underscore the need to address liquidity constraints and health infrastructure as a means of improving health outcomes and informing the design of social assistance programs.

Suggested Citation

  • Caio Pedro Castro & Raphael Corbi, 2025. "Income shocks and Mortality of Low-Wage Workers: Evidence from Wage Allowances in Brazil," Working Papers, Department of Economics 2025_09, University of São Paulo (FEA-USP).
    • Handle: RePEc:spa:wpaper:2025wpecon9
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    File URL: http://www.repec.eae.fea.usp.br/documentos/Castro_Corbi_09WP.pdf
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    JEL classification:

    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • H30 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - General

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