Income shocks and Mortality of Low-Wage Workers: Evidence from Wage Allowances in Brazil

Caio Pedro Castro and Raphael Corbi ()

No 2025_09, Working Papers, Department of Economics from University of São Paulo (FEA-USP)

Abstract: This study examines the impact of income receipt on mortality among low-wage workers in Brazil, using the quasi-random timing of federal wage allowance payments. Mortality rises 9% in the week after payment, especially for causes linked to economic activity. Effects are strongest in areas with limited healthcare access and greater credit constraints. Our estimates also indicate that this increase is not a temporal shift but is directly linked to the timing of payments. These results underscore the need to address liquidity constraints and health infrastructure as a means of improving health outcomes and informing the design of social assistance programs.

Keywords: Liquidity constraints; Mortality; Consumption smoothing (search for similar items in EconPapers)
JEL-codes: H30 I12 I18 (search for similar items in EconPapers)
Date: 2025-08-14
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