Household expenditure and child health in Vietnam: analysis of longitudinal data

Abstract While the relationship between socioeconomic status and child health has been studied extensively in developed countries, evidence is limited for developing countries. This study makes an important contribution by examining the relationship between child health and household socioeconomic status in Vietnam, using household expenditure as an alternative measure. This also allows us to explore the mechanisms via which income affects child health, in which household consumption arguably plays a crucial role. We employ different measures of health that allow us to examine both long-run and short-run effects, and two alternative instrumental variables, the unemployment rate and rainfall deviation, to address the potential endogeneity of household expenditure. We find evidence of a strong positive impact of household expenditure on child health and the findings are consistent across age groups. Specifically, a 10% increase in expenditure will result in a weight gain of 213–541 g in a “typical” child. We also explore the effect of a range of exogenous adverse economic shocks on children's health.