Impacts of adult illness on employment outcomes of rural households in India

Journal of Global Health
Khurshid AlamAjay Mahal

Abstract

Existing literature on the impacts of adult illness on household labour supply and income in low- and middle-income countries shows that adverse health conditions significantly affect household labour supply, work participation and earnings. Most of the studies, however, are not equipped to distinguish between short- and long-term consequences of adult illness. We measured the impact of adult illness on household employment outcomes both in the short- and the long-run, using a unique longitudinal data set from rural India. We used two waves of India Human Development Survey (1993-94 and 2004-05) with a balanced panel of 10 726 households to assess short-run (in the year of the occurrence of adult illness) and long-run (after 11 years of the occurrence of adult illness) effects of major illness of adult household members aged 15-64 years on household employment outcomes, using multiple matching methods: nearest-neighbor matching and inverse probability weighting following propensity score matching, and coarsened exact matching to compare employment outcomes to a set of matched control households. Rural households affected by adult illness experienced declines in workforce participation rate by 1-3%, wage employment by 4-15 days,...Continue Reading

References

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