Abstract

This study examines the effect of health status on vulnerability to poverty among households in Ghana using cross section data from the fifth round of the Ghana Living Standards Survey (GLSS 5). Employing a vulnerability estimation procedure suggested by Chaudhuri (2000), the study shows that good household health status has a significant negative impact on vulnerability to poverty. Households with sick members were found to be more vulnerable to poverty. Moreover, households with poor hygiene conditions were also more vulnerable to poverty. Using an upper poverty line, the estimates of vulnerability show that about 56% of households in Ghana are vulnerable to poverty in the future and this is higher than the observed poverty level of about 28%. The estimates were however sensitive to the poverty line used and different for various household characteristics. Moreover, vulnerability to poverty and poverty were found to be two independent concepts. It is therefore recommended that while policies directed towards vulnerability to poverty and poverty reduction should target household health status, including hygienic conditions, various household characteristics should not be taken for granted if efficiency is to be achieved in the implementation of such policies. Also, policies that target the current poor and neglect the current non-poor but vulnerable to poverty should be discouraged.

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School	: School of Law, Economics and Government
Issued Date	: 2010

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