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Household behaviour in times of political change: Evidence from Egypt

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  • Giesing, Yvonne
  • Music, Almedina

Abstract

Using representative household survey data, we study the short-term effects of the 2011 Egyptian uprisings on household behaviour in terms of education and health expenditure as well as savings. We construct a measure of political instability by analysing the number of fatalities during political protests throughout the country. Difference-in-Difference estimations show that affected households increased spending on education, especially on their sons' higher education. The increase in education expenditure is particularly prominent in areas where households were in favour of a regime change. We argue that after the fall of Mubarak those households had a positive outlook towards the future, with better labour market prospects, and therefore invested more in their sons' education. At the same time, households decreased spending on health and increased savings, which can be interpreted as precautionary behaviour. Our results are robust to placebo tests, excluding Cairo, spillovers and alternative ways of measuring political instability. (C) 2018 Elsevier Ltd. All rights reserved.

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  • Giesing, Yvonne & Music, Almedina, 2019. "Household behaviour in times of political change: Evidence from Egypt," Munich Reprints in Economics 78245, University of Munich, Department of Economics.
    • Handle: RePEc:lmu:muenar:78245
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    Cited by:

    1. Büttner, Nicolas & Grimm, Michael & Soubeiga, Sidiki, 2022. "Political instability and households’ investment behavior: Evidence from Burkina Faso," Journal of Comparative Economics, Elsevier, vol. 50(2), pages 350-368.
    2. Bargain, Olivier & Boutin, Delphine & Champeaux, Hugues, 2019. "Women's political participation and intrahousehold empowerment: Evidence from the Egyptian Arab Spring," Journal of Development Economics, Elsevier, vol. 141(C).
    3. Yvonne Giesing & Reem Hassan, 2021. "Between Hope and Despair: Egypt's Revolution and Migration Intentions," CESifo Working Paper Series 9237, CESifo.
    4. Li, Logan, 2021. "Political violence and household savings: Evidence from the long-term effects of the Cultural Revolution," The Journal of the Economics of Ageing, Elsevier, vol. 19(C).
    5. Bilal El Rafhi & Alexandre Volle, 2020. "The Effect of the Arab Spring on Preferences for Redistribution in Egypt," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 66(4), pages 875-903, December.
    6. Gudrun Østby & Olga Shemyakina & Andreas Forø Tollefsen & Henrik Urdal & Marijke Verpoorten, 2021. "Public Health and Armed Conflict: Immunization in Times of Systemic Disruptions," Population and Development Review, The Population Council, Inc., vol. 47(4), pages 1143-1177, December.
    7. Liu, Jenny & Modrek, Sepideh & Sieverding, Maia, 2019. "The effects of political protests on youth human capital and well-being in Egypt," Social Science & Medicine, Elsevier, vol. 243(C).

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    More about this item

    JEL classification:

    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • I10 - Health, Education, and Welfare - - Health - - - General
    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid

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