Publication Date

9-2011

Abstract

We study whether community based interventions improve risk sharing in rural Malawi. We focus on improvements in risk sharing arising as a result of design features of these interventions. We use a 2 year panel dataset collected within a cluster randomised trial to investigate whether two community based interventions - a participatory women’s group intervention and a home-based infant feeding intervention - targeted at improving reproductive and infant health, improve risk sharing amongst households following crop losses. We find strong evidence that such interventions help protect household consumption against a crop loss. Investigation of underlying channels rules out direct health effects and income smoothing, and suggests that increased social interactions due to the interventions may be the main driver.

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Suggested Citation
Fitzsimons, E., Malde, B., & Vera-Hernández. (2011). Do community-based interventions improve risk sharing? Evidence from Malawi. Washington, DC: U.S. Department of Labor, Bureau of International Labor Affairs.

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