Development Research Group, Development Economics, DEC
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Poverty, POV, Health, HEA
Development Research Group
Development Economics, DEC
Development Economics, DEC
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Last updated August 15, 2023
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The Distributional Impacts of Indonesia's Financial Crisis on Household Welfare : A 'Rapid Response' Methodology(Washington, DC: World Bank, 2002-09) Friedman, Jed ; Levinsohn, JamesAnalyzing the distributional impacts of economic crises is an ever more pressing need. If policymakers are to intervene to help those most adversely affected, they need to identify those who have been hurt most and estimate the magnitude of the harm they have suffered. They must also respond in a timely manner. This article develops a simple methodology for measuring these effects and applies it to analyze the impact of the Indonesian economic crisis on household welfare. Using only pre-crisis household information, it estimates the compensating variation for Indonesian households following the 1997 Asian currency crisis and then explores the results with flexible nonparametric methods. It finds that virtually every household was severely affected, although the urban poor fared the worst. The ability of poor rural households to produce food mitigated the worst consequences of the high inflation. The distributional consequences are the same whether or not households are permitted to substitute toward relatively cheaper goods. Households with young children may have suffered disproportionately large adverse effects.
Psychological Health Before, During, and After an Economic Crisis : Results from Indonesia, 1993 - 2000(World Bank, Washington, DC, 2007-11) Friedman, Jed ; Thomas, DuncanThe 1997 Indonesian financial crisis resulted in severe economic dislocation and political upheaval, and the detrimental consequences for economic welfare, physical health, and child education have been previously established in numerous studies. We also find the crisis adversely impacted population psychological well-being. We document substantial increases in several different dimensions of psychological distress among male and female adults across the entire age distribution over the crisis period. In addition, the imprint of the crisis can be seen in the differential impacts of the crisis on low education groups, the rural landless, and residents in those provinces that were hit hardest by the crisis. Elevated levels of psychological distress persist even after indicators of economic well-being such as household consumption had returned to pre-crisis levels suggesting long-term deleterious effects of the crisis on the psychological well-being of the Indonesian population.
No Thumbnail AvailablePublication(World Bank, Washington, DC, 2008-01) Das, Jishnu ; Do, Quy-Toan ; Friedman, Jed ; McKenzie, DavidThe social and economic consequences of poor mental health in the developing world are presumed to be significant, yet are largely under-researched. The authors argue that mental health modules can be meaningfully added to multi-purpose household surveys in developing countries, and used to investigate this relationship. Data from nationally representative surveys in Bosnia and Herzegovina, Indonesia, and Mexico, along with special surveys from India and Tonga, show similar patterns of association between mental health and socioeconomic characteristics across countries. Individuals who are older, female, widowed, and report poor physical health are more likely to report worse mental health outcomes. Individuals living with others with poor mental health are also significantly more likely to report worse mental health themselves. In contrast, there is little observed relationship between mental health and poverty or education, common measures of socio-economic status. The results instead suggest that economic and multi-dimensional shocks such as illness or crisis can have a greater impact on mental health than overall levels of poverty. This may have important implications for social protection policy. The authors also find significant associations between poor mental health and lowered labor force participation (especially for women) and higher frequency visits to health centers, suggesting that poor mental health can have significant economic consequences for households and the health system. Finally, the paper discusses how measures of mental health are distinct from general subjective welfare measures such as happiness and indicate useful directions of future research.
Publication(World Bank, Washington, DC, 2018-03) Filmer, Deon ; Friedman, Jed ; Kandpal, Eeshani ; Onishi, JunkoCash transfer programs may generate significant general equilibrium effects that can detract from the anti-poverty goals of the program. Data from a randomized evaluation of a Philippine cash transfer program targeted to poor households show that a 9 percent increase in village income significantly raised the prices of perishable protein-rich foods while leaving other food prices unaffected. The price changes are largest in areas with the highest program saturation, where the shock to village income is on the order of 15 percent and persists more than 2.5 years after program introduction. Although significantly improving nutrition related outcomes among beneficiary children, the cash transfer worsened those same indicators among non-beneficiary children. The stunting rate of young non-beneficiary children increased by eleven percentage points, with even greater increases in the most saturated areas. Another potentially related spillover arises in local health markets: formal health care utilization by mothers and children also declined among non-beneficiary households. Failing to consider such local general equilibrium effects can overstate the net benefit of targeted cash transfers. In areas where individual targeting of social programs covers the majority of households, offering the program on a universal basis should avoid such negative impacts at little additional cost.
Publication(World Bank, Washington, DC, 2017-09) de Hoop, Jacobus ; Friedman, Jed ; Kandpal, Eeshani ; Rosati, FurioCould a partial subsidy for child education increase children's participation in paid work? In contrast to much of the theoretical and empirical child labor literature, this paper shows that child work and school participation can be complements under certain conditions. Using data from the randomized evaluation of a conditional cash transfer program in the Philippines, the analysis finds that some children, who were in neither school nor work before the program, increased participation in school and work-for-pay after the program. Earlier cash transfer programs, notably those in Mexico, Brazil, and Ecuador, increased school attendance while reducing child labor. Those programs fully offset schooling costs, while the transfers under the Philippine transfers fall short of the full costs of schooling for a typical child. As a result, some beneficiary children from poor Philippine households increased work to support their schooling. The additional earnings from this work represent a substantive share of the shortfall in the schooling costs net of transfer. The paper rules out several potential alternative explanations for the increase in child labor, including changes in household productive activities, adult labor supply, and household expenditure patterns that, in principle, can arise after a cash transfer and may also affect the supply of or demand for child labor.
Publication( 2011-01-01) Buttenheim, Alison ; Alderman, Harold ; Friedman, JedDespite the popularity and widespread implementation of school feeding programs, evidence on the impact of school feeding on school participation and nutritional status is mixed. This study evaluates school feeding programs in three northern districts of the Lao People's Democratic Republic (Lao PDR). Feeding modalities included on-site feeding, take-home rations, and a combination. District-level implementation of the intervention sites and selective take-up present considerable evaluation challenges. To address these limitations, the authors use difference-in-difference estimators with propensity-score weighting to construct two plausible counterfactuals. They find minimal evidence that the school feeding schemes increased enrollment or improved children s nutritional status. Several robustness checks and possible explanations for 0 findings are presented.