Working Paper: NBER ID: w14998
Authors: Anne Case; Alicia Menendez
Abstract: We examine the costs associated with funerals and the effects of funeral spending on household functioning, using data collected in the Agincourt Demographic Surveillance Site in South Africa. We find that large outlays of money at the time of the funeral leave households vulnerable to future hardship. Households that buried a member report lower spending per person, poorer adult affect, and lower rates of school enrollment for children than do other households. We present evidence consistent with the financial burden associated with a funeral having direct, adverse effects on households.
Keywords: funeral costs; household functioning; South Africa; economic hardship
JEL Codes: D12; O12
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Funeral expenses (D14) | Reduced household expenditure (D12) |
| Reduced household expenditure (D12) | Increased symptoms of depression and anxiety among adults (I12) |
| Funeral expenses (D14) | Increased symptoms of depression and anxiety among adults (I12) |
| Funeral expenses (D14) | Lower rates of school enrollment for children (I21) |
| Reduced household expenditure (D12) | Lower rates of school enrollment for children (I21) |