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Journal of Political Economy Vol. 113 No. 1 2005

Water for Life: The Impact of the Privatization of Water Services on Child Mortality

Sebastian Galiani1; Paul Gertler2,3; Ernesto Schargrodsky4

1 University of San Andrés · 2 National Bureau of Economic Research · 3 University of California, Berkeley · 4 Universidad Torcuato Di Tella

open access

Abstract

In the 1990s Argentina embarked on one of the largest privatization campaigns in the world as part of a structural reform plan. The program included the privatization of local water companies covering approximately 30 percent of the country’s municipalities. Since clean water and sewage treatment are critical to control the spread of infectious and parasitic diseases; access expansions, quality improvements, and tariff changes associated to privatization may have affected health outcomes. Using the variation in ownership of water provision across time and space generated by the privatization process, we find that child mortality fell 5 to 7 percent in areas that privatized their water services overall; and that the effect was largest in the poorest areas. In fact, we estimate that child mortality fell by 24 percent in the poorest municipalities. These results suggest that the privatization of water services prevented approximately 375 deaths of young children per year. We check the robustness of these estimates using cause specific mortality. While privatization is associated with significant reductions in deaths from infectious

DOI
10.1086/426041
Volume
113
Issue
1
Pages
83-120
Language
en
Sources
bibtex:phds-export.bib openalex crossref

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