The Relationship between Conflicts, Economic Shocks, and Death with Depression, Economic Activities, and Human Capital Investment in Nigeria

30 Pages Posted: 20 Dec 2018 Last revised: 21 Dec 2018

See all articles by Julian C. Jamison

Julian C. Jamison

University of Exeter Business School - Department of Economics; World Bank eMBeD (Mind, Behavior, and Development); Massachusetts Institute of Technology (MIT) - Abdul Latif Jameel Poverty Action Lab (J-PAL); Innovations for Poverty Action

Kevin McGee

World Bank

Gbemisola Oseni

World Bank

Julie Ting Ting Perng

World Bank

Ryoko Sato

National University of Singapore (NUS)

Tomomi Tanaka

The World Bank

Renos Vakis

World Bank Group, Kenya

Date Written: December 19, 2018

Abstract

This paper examines the links between adverse events, depression, and decision making in Nigeria. It investigates how events such as conflicts, shocks, and deaths can affect short-term perceptions of welfare, as well as longer term decisions on economic activities and human capital investments. First, the findings show that exposure to conflict has the largest and strongest relationship with depression, associated with a 15.3 percentage point increase in the probability of reporting depressive symptoms (from a base of 22 percent). This is equivalent to a reduction in annual per capita income of around US$52 (in present day terms). Second, the study randomized the timing of the module on adverse events with respect to the mental health module. The analysis finds that individuals who were reminded about their history of adverse events (provided that they had one) have a 6.5 percentage point higher probability of reporting depressive symptoms. The final sets of results show that depression is associated with lower labor force participation and child educational investment. People with depressive symptoms are 8 percentage points less likely to work; this is driven by a reduction in engagement in agricultural activities for men and self-employment for women. In addition, households with a parent exhibiting depressive symptoms spend 20 percentage points less on education. These results suggest that there is a direct link between mental health, welfare perceptions, and decision making, beyond the indirect link via exposure to adverse effects.

Keywords: Mental Health, Inequality, Educational Sciences, Disability, Access of Poor to Social Services, Economic Assistance, Services & Transfers to Poor

Suggested Citation

Jamison, Julian C. and McGee, Kevin and Oseni, Gbemisola and Perng, Julie Ting Ting and Sato, Ryoko and Tanaka, Tomomi and Vakis, Renos, The Relationship between Conflicts, Economic Shocks, and Death with Depression, Economic Activities, and Human Capital Investment in Nigeria (December 19, 2018). World Bank Policy Research Working Paper No. 8685, Available at SSRN: https://ssrn.com/abstract=3304335

Julian C. Jamison (Contact Author)

University of Exeter Business School - Department of Economics ( email )

Streatham Court
Exeter, EX4 4RJ
United Kingdom

World Bank eMBeD (Mind, Behavior, and Development) ( email )

1818 H Street, N.W.
Washington, DC 20433
United States

Massachusetts Institute of Technology (MIT) - Abdul Latif Jameel Poverty Action Lab (J-PAL) ( email )

30 Wadsworth Street, E53-320
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Cambridge, MA 02142
United States

Innovations for Poverty Action ( email )

1731 Connecticut Ave, 4th floor
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Kevin McGee

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

Gbemisola Oseni

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

Julie Ting Ting Perng

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

Ryoko Sato

National University of Singapore (NUS) ( email )

1E Kent Ridge Road
NUHS Tower Block Level 7
Singapore, 119228
Singapore

Tomomi Tanaka

The World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

Renos Vakis

World Bank Group, Kenya ( email )

1818 H Street NW
Washington, DC 20433
United States

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