Economic Consequences of Maternal Illness in Rural Bangladesh

Abstract

We use panel data on household consumption combined with information taken from the medical records of women who gave birth in health facilities to explore the economic consequences of maternal ill health, in the context of a rural population in Bangladesh. We find that households are able to fully insure consumption against maternal ill health, although confidence intervals are unable to rule out a small effect. There is a negative effect of maternal complications on the number of children the family has in school, suggesting that there may be consequences for the most vulnerable household members. Households in our study area are shown to have good access to informal credit (whether it be from local money lenders or family relatives) and this appears critical in helping to smooth consumption over the short term.