Health and incomes in Malawi and the KwaZulu-Natal province of South Africa

Abstract

This thesis examines the relationship between health and income in Malawi and the KwaZulu-Natal province in South Africa. The first empirical chapter considers the previously unused Second Integrated Household Survey (IHS2) to examine child mortality in Malawi. Household income and bed net use are included within the analysis presented in addition to the standard proximate determinants of population health. It is found that possessing at least some education and using bed nets significantly reduces child deaths. The second empirical chapter explores the effect of morbidity upon daily wage rates in Malawi using the IHS2. The results suggest that even relatively short periods of morbidity reduce the daily wage received by relatively large amounts. The final empirical chapter examines the impact of different types of “health shocks” upon household income in 1998 and 2004 using the KwaZulu-Natal Income Dynamics Study (KIDS) dataset. The results suggest that the effect of “health shocks” upon household income is negative in 1998 using a propensity score matching method. Direct income losses associated with shocks are also examined and indicate that for most households the effect of health shocks is generally small.