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Insuring against Disasters and Poor Institutions

Remittances as Aid and Informal Family Insurance during Typhoon Haiyan in the Philippines

Bibliographic Data

ID7170942
AuthorsChristopher James R Cabuay (De La Salle University), Christopher James Cabuay (De La Salle University, corresponding author), Budy P Resosudarmo (0000-0003-2273-9765, Australian National University)
Year2025
Volume61
Issue7
Pages1058-1080
Publication date2025-07-03
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueThe Journal of Development Studies (JOURNAL)
Journal identifiersISSN: 0022-0388 • E-ISSN: 1743-9140
PublisherInforma UK Limited (PUBLISHER • GB)
DOI10.1080/00220388.2025.2453514
OpenAlexW4407228977
LanguageEN
References cited23

Aggregate international remittances have been documented to increase as an ex-post response to a disaster, but subtle nuances may be present when looking at household level behaviour. This study paper looks at the response of remittance incidence and levels to a disaster using a natural experiment exploiting the randomness of the path of Typhoon Haiyan, one of the strongest typhoons in Philippine history. We leverage the available 2008–2014 APIS into repeated cross-sections and use a difference-in-differences and event-study approach. Estimates reveal a 3.9 per cent higher remittance incidence but no impact in remittance levels. The positive remittance response is only heterogeneously observable for lower-income households–particularly, third- and fourth-income decile households. We find suggestive evidence that remittance participation is higher with better regional infrastructure and institutions on average, but remittances increase even more so during a crisis when the home region’s infrastructure is deficient. The results paint remittances as an extremely resilient, risk-coping mechanism for households during disasters

Business · Economic growth · Economics · Geography · Meteorology · Typhoon · Agricultural risk and resilience · Climate Change, Adaptation, Migration · Migration and Labor Dynamics

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Highly citedNo

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