Kin transfers as safety nets in response to idiosyncratic and correlated shocks
Herskowitz, Sylvan · Kleemans, Marieke · Pulido, Cristhian
Dec 2021 · IFPRI Discussion Paper Book 1 · Intl Food Policy Res Inst
5.0star
1 reviewreport
Ebook
32
Pages
family_home
Eligible
info
reportRatings and reviews aren’t verified Learn More
About this ebook
While formal insurance is widespread in much of the developed world, households in lower-income countries continue to rely heavily on informal risk-sharing networks when faced with unexpected shocks. Kin networks of non-coresident family members may play an important role by providing each other with informal social protection, sharing resources in response to correlated production shocks (rainfall) or idiosyncratic household shocks (sickness and death). Using detailed panel data from Indonesia, we examine how inter-household transfers within a household’s kin network respond to different types of shocks and whether they are able to reduce household vulnerability. We find that households are exposed to meaningful risk from variations in local rainfall in the form of both income and household consumption. Rainfall substantially increases both transfers sent and received by households, suggesting that household and local supply effects dominate demand effects resulting from rainfall fluctuation. Finally, we find modest evidence that transfers reduce vulnerability of consumption to rainfall fluctuations by up to 11%, but do not find strong evidence on the efficacy of formal social protection programs.
Ratings and reviews
5.0
1 review
Anil Das
- Flag inappropriate
October 25, 2023
AAA BOSS NETWORK
Rate this ebook
Tell us what you think.
Reading information
Smartphones and tablets
Install the Google Play Books app for Android and iPad/iPhone. It syncs automatically with your account and allows you to read online or offline wherever you are.
Laptops and computers
You can listen to audiobooks purchased on Google Play using your computer's web browser.
eReaders and other devices
To read on e-ink devices like Kobo eReaders, you'll need to download a file and transfer it to your device. Follow the detailed Help Center instructions to transfer the files to supported eReaders.
