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Insecurity and Welfare

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  • Fafchamps, Marcel
  • Minten, Bart

Abstract

Using original survey data, we examine how insecurity affects welfare. Correcting for unobserved heterogeneity and possible endogeneity, we find an effect of insecurity on incomes, school enrolment, health status, and infant mortality. Results are robust to the inclusion of various shocks potentially affecting both welfare and insecurity. But the significance of the insecurity effect varies somewhat with the method used. 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 suggests that insecurity is an important determinant of welfare in the country studied.

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  • Fafchamps, Marcel & Minten, Bart, 2006. "Insecurity and Welfare," CEPR Discussion Papers 5999, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:5999
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    Cited by:

    1. Minten, Bart & Barrett, Christopher B., 2008. "Agricultural Technology, Productivity, and Poverty in Madagascar," World Development, Elsevier, vol. 36(5), pages 797-822, May.

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    More about this item

    Keywords

    Crime; School enrolment; Health; Project placement;
    All these keywords.

    JEL classification:

    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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