In Times of Sickness: Intra-household Labour Substitution in Rural Indonesian Households

In many developing countries, households with ill adults suffer not only from diminished labour supply but also from an inability to borrow against future labour income. Intra-household labour substitution may be an important coping strategy for these households. Using information about individual health status provided by Indonesia Family Life Survey, this study finds some evidence that Indonesian farm households cope with chronic illnesses of male adults through intra-household labour substitution. Yet, the results show that this strategy is not effective in the case of severe health shocks and that these households are unable to keep their family farm profits stable.