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Insecurity and Welfare

Marcel Fafchamps and Bart Minten ()

No 5999, CEPR Discussion Papers from C.E.P.R. Discussion Papers

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.

Keywords: Crime; School enrolment; Health; Project placement (search for similar items in EconPapers)
JEL-codes: I38 K42 O15 (search for similar items in EconPapers)
Date: 2006-12
New Economics Papers: this item is included in nep-dev and nep-law
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