Working Paper: CEPR ID: DP5999
Authors: Marcel Fafchamps; Bart Minten
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; health; project placement; school enrolment
JEL Codes: I38; K42; O15
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| insecurity (F52) | incomes (D31) |
| insecurity (F52) | school enrolment (I21) |
| insecurity (F52) | health status (I12) |
| insecurity (F52) | infant mortality (J13) |
| insecurity (F52) | provision of public services (H42) |
| insecurity (F52) | establishment of new schools (I29) |
| insecurity (F52) | establishment of health centers (I19) |
| insecurity (F52) | economic activities (E29) |
| insecurity (F52) | large-scale manufacturing (L60) |
| insecurity (F52) | small-scale mining (L72) |