Coping with shocks in rural Ethiopia

Zelalem Yilma, Anagaw Mebratie, Robert Sparrow (), Degnet Abebaw Ejigie, Marleen Dekker, Getnet Alemu and Arjun Bedi
Authors registered in the RePEc Author Service: Zelalem Yilma ()

Journal of Development Studies, 2014, vol. 50, issue 7, 1009-1024

Abstract: Using survey data and event history interviews undertaken in Ethiopia, we investigate which shocks trigger which coping responses and why. Relatively covariate natural and economic shocks trigger reductions in savings and in food consumption, while relatively idiosyncratic health shocks prompt reductions in savings and a reliance on borrowing. Surprisingly, across all shocks, households do not rely on gifts from family and friends, highlighting the need for formal protection systems. We argue that the insensitivity of food consumption to health shocks does not imply insurability but indicates that it is not a viable response to such a shock.

Date: 2014
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Citations: View citations in EconPapers (19)

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Working Paper: Coping with shocks in rural Ethiopia (2013)
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DOI: 10.1080/00220388.2014.909028

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