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Insecurity and welfare Marcel Fafchamps, CSAE, Oxford University Bart Minten, Cornell University WPS/2004-31 Download the Paper (PDF format) - October 1, 2004 Tell a colleague about it. Printing Tips: Select 'print as image' in the Acrobat print dialog if you have trouble printing. ABSTRACT: Using original survey data, we examine how insecurity affects welfare. Correcting for unobserved heterogeneity and possible endogeneity, we find a strong effect on incomes, school enrollment and health status, but no effect on infant mortality. The effect of insecurity is robust to the inclusion of various shocks potentially affecting both welfare and insecurity. 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. SUGGESTED CITATION: Marcel Fafchamps and Bart Minten, "Insecurity and welfare" (October 1, 2004). The Centre for the Study of African Economies Working Paper Series. Working Paper 231. http://www.bepress.com/csae/paper231