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Table 2 Effect of health shocks on household labour supply and income in low and middle income countries

From: Economic impacts of health shocks on households in low and middle income countries: a review of the literature

Study

Country

Data source

Statistical model

Measure of health shocks

Labour supply effect

Income effect

Gertler & Gruber, 2002 [47]

Indonesia

Indonesian Resource Mobilization Study panel (1991, 1993)

Ordinary Least Square (OLS), Instrumental Variable (IV)

Change in index of limitations in household’s head ability to perform activities of daily living (ADLs). Index based on a formula using self-reported ability to perform basic and intermediate activities of daily living.

(-)7.60% in hours relative to baseline

(-)10% per capita of baseline earnings

Yamano & Jayne, 2004 [48]

Kenya

Rural household survey panel (19997, 2000)

Difference-in-difference (DID), OLS

Any adult death; Death of male household head

 

(-)35-40% off-farm income

 

(-)79%*off-farm income

Beegle, 2005 [49]

Tanzania

Kagera Health and Development Survey 4 panels (1991-1994

Fixed effect regression

& Probit model

Death of an adult household member (15–50 years) due to AIDS

(-)66-75%** men’s wage employment within 6 months

…….

Lindelow & Wagstaff, 2005 [50]

China

China Health and Nutrition Survey panel (1991, 1993, 1997, 2000)

Fixed effect regression

Worsening of self-assessed health (SAH) of household head by one rating on a 4 point scale (excellent, good, fair and poor) = small health shock; difference of 2–3 ratings = ‘large health shock’

(-)15%* labour market participation

(-)6.20%* total per capita income

(-)10%* earned per capita income

Wagstaff, 2005 [51]

Vietnam

Vietnam Living Standard Survey panel (1993, 1998)

Fixed effect regression

Decline in log of average body mass index (BMI) among household members aged 18 plus between 1993 and 1998

…….

(-)59.90%** total per capita income

(-)102.60%*** earned per capita income

Mete & Schultz, 2006 [52]

Taiwan

Surveys of Health and Living Status panel (1989, 1993, 1996)

Ordered probit model

Heart disease among elderly male;

(-)27.30%*** labour-force participation

…….

Stroke among elderly male

(-)72.80%*** labour-force participation

Wagstaff, 2007 [35]

Vietnam

Vietnam Living Standard Survey panel (1993, 1998)

Fixed effect regression

Death of working age member in urban areas in two or so years before the 1998 survey

…….

(-)26%*** total income

(-)36.50%*** earned income

Bridges & Lawson, 2008 [53]

Uganda

Ugandan national household survey (2002–2003)

Heckman two-part model

Self-reported ill health (female); Self-reported ill health (male)

(-)6.20*** in paid employment

…….

(-)3.90*** in paid employment

Yamauchi et al. 2008 [54]

South Africa

KwaZulu-Natal Income Dynamics Study panel (1998, 2004)

Conditional fixed effect logit

Prime-age adult (20–44 years) mortality due to AIDS

(+)20%*** labour force participation (adolescents & female adults)

…….

Khan, 2010 [37]

Bangladesh (Dinajpur)

SHAHAR household survey 3 panels (2002–2003)

Fixed effect & random effect regression

Death of a household member in past 2 years; Serious illness of a household member that prevented from doing normal activities in past 1 year

(-)8.63 hours worked in the past week

(-)12.00% per capita earned income last month

(-)2.61 hours worked in the past week

(-)8.65%* per capita earned income last month

Ghatak & Madheswaran, 2011 [55]

India

National Sample Survey (2004)

Tobit model

Not able to work due to ailment (illness)

…….

(-)21.60%** annual household income

Kadiyala et al. 2011 [34]

Ethiopia

Panel Ethiopian Rural Household Survey panel (1994–1997)

DID, Propensity Score Matching (PSM)

Prime age adult (15–54 years) mortality between 1994 and 1997

(+)dependency ratio = 0.32***

…….

Rocco et al. 2011 [56]

Egypt

Household Health Utilization and Expenditure Survey, 2002

Fixed effect regression & IV

Self-reported persistent health problem (disability, disease, injury or any other chronic disease) for at least 3 months during last 12 months

(-)26%*** being employed

…….

(-)24*** hours per week

Omar Mahmoud & Thiele, 2013 [57]

Zambia

Two-wave household panel (2001, 2004)

DID & PSM

Any prime age (12 years+) death between 1996 and 2001, and after 2001

…….

(-)4000-78000 (Zambian Kwacha) per adult-equivalent household income

Bales, 2013 [58]

Vietnam

Household Living Standards Survey panel (2004, 2006)

Fixed effect Poisson regression

Adult (15–60 years) member bedridden due to illness for 14 days or more in 12 months; Onset of disability (with respect to sight, hearing, memory and concentration, walking and climbing stairs, self-care and understanding and making oneself understood)

(-)7.70%** annual workdays

…….

(-)11.90%* annual workdays

  1. Statistical significance at the level of 1%***, 5%** and 10%*; …….results not available.