Vulnerability of households to health shocks: an Indonesian study

Nguyen Thi Nhu Nguyet and Eiji Mangyo

Bulletin of Indonesian Economic Studies, 2010, vol. 46, issue 2, 213-235

Abstract: We examine the effect of illness and injury shocks on work hours and household consumption in Indonesia. Using indices of activities of daily living to measure health shocks, we find that both labour hours and household consumption are influenced by health shocks to household heads. Further, farm households seem to be more seriously affected than non-farm households by health shocks. However, the magnitude of the health effect on household consumption is small, implying that even farm households are well protected on average by the presence of formal and informal risk-coping mechanisms.

Date: 2010
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DOI: 10.1080/00074918.2010.486108

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Bulletin of Indonesian Economic Studies is currently edited by Firman Witoelar Kartaadipoetra, Arianto Patunru, Robert Sparrow, Sarah Xue Dong and Sean Muir

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