Shocks and Mental Health – Panel Data Evidence from South Africa

Submitted by Petra Hansson on
EfD Authors:
Alem, Yonas

Households in developing countries are subject to considerable risk and shocks, but most don’t have the ability to deal with them using formal mechanisms. We use five rounds of South African NIDS panel data and investigate the impact of shocks on the mental health of individuals. We find that experiencing idiosyncratic shocks, such as the death of a supportive family member and loss of assets, has significant negative impacts on mental health.

EfD Discussion Paper
Health

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