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Path Dependence in Disability.

Neha Agarwal1, Hans-Peter Kohler2, Subha Mani3

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Summary
This summary is machine-generated.

Disability in Malawi shows partial persistence for males with severe limitations but no persistence for females. This suggests long-term costs of disability can be moderated by recovery, impacting policy for activity limitations.

Keywords:
ADLsJEL classification: J14, I15, I10Malawiactivity limitationsdisabilitypanel data

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Area of Science:

  • Health Economics
  • Development Economics
  • Disability Studies

Background:

  • Disability prevalence in African nations often surpasses the global average.
  • Activity limitations can lead to significant economic consequences, including job loss and reduced lifetime income.
  • Understanding the persistence of these limitations is crucial for accurate economic impact assessments.

Purpose of the Study:

  • To investigate the path dependence of activity limitations using longitudinal data from rural Malawi.
  • To determine if disability onset leads to persistent functional limitations over time.
  • To analyze potential gender differences in the persistence of activity limitations.

Main Methods:

  • Utilized five rounds of longitudinal data from a low-income African country (Malawi).
  • Employed a dynamic linear panel data model to estimate the persistence of activity limitations.
  • Applied Arellano-Bover estimation techniques to analyze the lagged health outcome's impact.

Main Results:

  • Males demonstrated partial persistence in the incidence and intensity of severe activity limitations.
  • No persistence was observed for non-severe limitations in males.
  • Females exhibited no persistence in any type of activity limitations, indicating recovery.

Conclusions:

  • The findings suggest that the long-term economic costs of disability can be moderated by the potential for recovery.
  • Policy implications include refining cost-of-disability calculations by accounting for the dynamic nature of limitations.
  • Gender-specific analysis is important for understanding disability's economic impact in low-income settings.