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Disability and household economic wellbeing: evidence from Indonesian longitudinal data

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  • Natalie Simeu
  • Sophie Mitra

Abstract

A health shock in general, and a disability in particular, may expose households to material insecurity due to out-of-pocket health expenditures and reduced earnings. Studies on the impact of disability on household welfare in developing countries are scarce, although the expected impact is large given the absence of social protection programmes. Using a unique Indonesian longitudinal dataset with individuals followed over a 17-year period, this study analyses the economic impact and coping mechanisms adopted by households following a physical disability. Fixed effects estimations reveal that households experience rising health expenditures and reduced labour income. Households cope by reducing their food, non-food and education expenditures, selling assets and receiving more remittances. While all household groups are affected by disability, only the poorest households become significantly more likely to cut their food expenditures.

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  • Natalie Simeu & Sophie Mitra, 2019. "Disability and household economic wellbeing: evidence from Indonesian longitudinal data," Oxford Development Studies, Taylor & Francis Journals, vol. 47(3), pages 275-288, July.
    • Handle: RePEc:taf:oxdevs:v:47:y:2019:i:3:p:275-288
    DOI: 10.1080/13600818.2019.1575348
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    Cited by:

    1. Zhang, Xiang & Li, Dongwen & Zhan, Peng & Bai, Xianchun, 2023. "Who benefits from the basic old-age insurance contribution subsidy policy for the disabled?," Social Science & Medicine, Elsevier, vol. 338(C).

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