Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/200383 
Year of Publication: 
2019
Series/Report no.: 
ISER Working Paper Series No. 2019-04
Publisher: 
University of Essex, Institute for Social and Economic Research (ISER), Colchester
Abstract: 
Although understanding the role of health in driving labor market outcomes is a matter of great importance, it has proven difficult to isolate this effect due to empirical challenges and a lack of compelling sources of identification. We obtain causal estimates of the effect of health on income and welfare dependency through two different channels: a negative health shock (dengue outbreak) and a positive health shock (opening of a health-care facility). To do this, we rely on instrumental variables and difference-in-difference methods, as well as on novel datasets. We find that dengue outbreaks lower the average working hours and income. This effect is particularly high for low-income individuals, but conditional cash transfer programs can insulate them from this shock. On the other hand, the opening of a new health-care facility in a families catchment area rises family per capita income and employment. All together, this evidence suggest that health shocks are an important part of income, poverty and welfare dependency.
Document Type: 
Working Paper

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