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Water Works

The Economic Impact of Water Infrastructure

Robyn C. Meeks
Journal of Human Resources, October 2017, 52 (4) 1119-1153; DOI: https://doi.org/10.3368/jhr.52.4.0915-7408R1
Robyn C. Meeks
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    Notes: Calculated for rural households relying on unimproved water sources (rivers, streams, etc.). Calculations made using the UNICEF Multiple Indicator Cluster Survey (2006).

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    Table 1

    Length of Time from Household to Water Source in Northern Kyrgyzstan

    RegionAverage Number of MinutesNumber of Households
    Issyk Kul27.42215
    Naryn25.36288
    Talas24.04273
    All North25.68776
    • View popup
    Table 2

    Baseline Characteristics: Differences by Selection Year

    Means by Selection YearDifferences between Selection Years
    2003
    Selected
    (1)
    2004
    Selected
    (2)
    2005
    Selected
    (3)
    2006
    Selected
    (4)
    Difference
    2004–2003
    (5)
    Difference
    2005–2003
    (6)
    Difference
    2006–2003
    (7)
    Panel A: Village-Level Characteristics
    Number of households23933035038591.8**111.4***146.6*
    [165][232][186][316](38.94)(35.31)(85.21)
    Household size5.2595.2785.1095.2290.019−0.150−0.03
    [0.608][0.408][0.5012][0.522](0.097)(0.109)(0.157)
    Proportion: population unemployed0.2670.2880.3040.2730.0210.0360.006
    [0.253][0.230][0.261][0.280](0.051)(0.051)(0.080)
    Proportion of HHs with income from:
     Formal employment0.3610.3700.3720.3710.0090.0110.001
    [0.080][0.078][0.064][0.082](0.015)(0.014)(0.024)
     Government pensions0.0960.0950.1050.094−0.0000.009−0.002
    [0.0301][0.028][0.027][0.028](0.006)(0.006)(0.008)
     Government assistance0.0090.0090.0110.007−0.0000.002−0.002
    [0.013][0.016][0.016][0.009](0.003)(0.003)(0.003)
     Self-employment0.5280.5200.5040.530−0.008−0.024**0.002
    [0.059][0.060][0.045][0.074](0.011)(0.010)(0.021)
    Proportion with secondary education (adults)0.5660.5480.5680.539−0.0180.002−0.027
    [0.075][0.096][0.070][0.115](0.017)(0.014)(0.031)
    Observations (number of villages)61514614
    Panel B: Household-Level Characteristics
    Main drinking water source is:
     Shared piped water0.2110.3640.6040.1530.394*
    [0.410][0.483][0.492](0.162)(0.203)
     Unprotected water0.3470.2630.313−0.085−0.035
    [0.479][0.442][0.466](0.196)(0.240)
     Water <200m from HH0.7160.8990.6980.183−0.018
    [0.453][0.303][0.462](0.138)(0.145)
    Number of land plots1.9471.7581.885−0.190−0.0620
    [0.305][0.431][0.432](0.123)(0.131)
    Total size of plots (sq. meters)15,49314,18821,001−1,3065,508
    [10,434][11,824][12,815](4,021)(4,587)
    Proportion of land:
     Cultivated0.9480.9510.9490.0030.001
    [0.206][0.210][0.216](0.035)(0.055)
     Privately owned0.9720.9740.9650.0120.008
    [0.175][0.141][0.158](0.030)(0.036)
     Land irrigated0.9910.9610.949−0.030−0.042
    [0.085][0.187][0.213](0.017)*(0.034)
    Farm-related expenditures (KGS)2,5332,6503,535117.41,002
    [2,989][3,691][3,551](1,031)(1,105)
    Observations (number of households)959996
    • ↵Notes: The selection year is the year the village was chosen for treatment. Village-level characteristics are calculated using 1999 Census data from the Kyrgyz National Statistics Committee. The number of observations (villages) in each Column of Panel A match the number of villages selected in each of the years, except 2004 in which there was one village that could not be matched to the census data. Household-level characteristics are calculated using the Kyrgyz Integrated Household Survey for 2003. Columns 1–4 shows variable means by selection year, with standard deviations in brackets. Columns 5–7 show differences between selection years and the standard errors are in parentheses with statistical significance denoted by: ***p < 0.01, **p < 0.05, *p < 0.1. Household calculations have standard errors clustered at the village level. Plot size variable drops outliers (top 5% of observations).

    • View popup
    Table 3

    Testing Pretrends with Baseline Data

    2003 Difference: Late – early
    (1)
    2004 Difference: Late – early
    (2)
    Difference in Difference
    (Column 2 – 1)
    (3)
    Main drinking water source is:
     Shared piped water0.3160.355*0.040
    (0.197)(0.204)(0.120)
     Unprotected water0.008−0.089−0.097
    (0.214)(0.212)(0.080)
     Water <200m from HH−0.1110.0740.185
    (0.113)(0.112)(0.141)
    Number of land plots−0.0120.0380.050
    (0.171)(0.186)(0.050)
    Total size of plots (sq. meters)6,1354,204−1,931
    (4,431)(4,423)(1,500)
    Proportion of land:
     Cultivated0.006−0.008−0.014
    (0.046)(0.044)(0.064)
     Privately owned−0.0110.016**0.028
    (0.034)(0.008)(0.033)
     Land irrigated−0.0120.065*0.077*
    (0.027)(0.034)(0.045)
    Farm-related expenditures (KGS)661.9929.4267.4
    (988.9)(916.1)(344.9)
    Observations (number of households)290304594
    • ↵Notes: Results are from tests of pretrends. Column 1 presents results using just 2003 data. Column 2 presents results using just 2004 data. Column 3 shows results of Column 2 minus Column 1. The sample for these calculations is limited to those villages that eventually receive infrastructure through the program. “Late villages” are those selected after 2004, whereas the “early villages” are those selected in 2003 and 2004. Details on the village selection are described in the paper text. Standard errors are clustered at the village level and in parentheses. Statistical significance is denoted by: ***p < 0.01, **p < 0.05, *p < 0.1. Plot size variable drops outliers (top 5 percent of observations).

    • View popup
    Table 4

    Household Water Access, Difference-in-Differences

    Main Drinking Water Source is:Shared Piped Water (1)Shared Piped Water (2)Unprotected Water (3)Unprotected Water (4)Located <200 m from HH (5)Located <200 m from HH (6)
    Water system0.260**0.247*−0.297***−0.237**0.187**0.144*
    (0.110)(0.126)(0.094)(0.092)(0.081)(0.080)
    [0.064][0.148][0.020][0.036][0.040][0.144]
     Controls for score * yearNoYesNoYesNoYes
     District-year fixed effectsYesYesYesYesYesYes
     Village fixed effectsYesYesYesYesYesYes
    Mean baseline water access0.4830.4830.2310.2310.7940.794
    Number of villages383838383838
    Household observations3,2353,2353,2353,2353,2353,235
    R-squared0.5440.5440.5600.5600.3030.303
    • ↵Notes: Results are for difference-in-differences regressions using the household survey data collected annually via the Kyrgyz Integrated Household Survey. Data include all years between 2003 and 2010. Observations are at the household level. Sample is limited to those villages (38 in total) that were eligible to receive the water infrastructure through the program. Baseline means are calculated for 2003 and 2004. All regressions include controls for household characteristics (the number of rooms in the home). Standard errors are clustered at the village level and in parentheses, with statistical significance denoted by: ***p < 0.01, **p < 0.05, *p < 0.1. Wild bootstrap clustered (village) p-values in brackets.

    • View popup
    Table 5

    Aggregated Time Use of Household Members, Difference-in-Differences

    Home Production
    (1)
    Market Work
    (2)
    Leisure
    (3)
    Panel A: Initial Specification
    Water system−169.689***89.897**79.792**
    (47.431)(33.644)(37.496)
    [0.140][0.150][0.315]
    Mean (minutes per day)983.50135.90320.60
    Observations2,1842,1842,184
    R-squared0.4030.3140.304
    Number of villages383838
    Panel B: Include Score*Year Controls
    Water system−151.169***83.042**68.128*
    (55.163)(39.438)(36.024)
    [0.182][0.252][0.240]
    Observations201420142014
    R-squared0.3960.3130.310
    Number of villages363636
    • ↵Notes: Time use data collected for household members 12 years and older via the KIHS (2005, 2010). Observations are individual level. Time use is measured in number of minutes per 24-hour period (totaling 1440 minutes). All regressions include the following controls: (1) season dummies, (2) day of week dummies, (3) respondent age and gender, (4) size of respondent’s household, (5) district-year fixed effects, and (6) village fixed effects. Time use categories are described in the Online Appendix. Standard errors are clustered at the village level and in parentheses, with statistical significance denoted by: ***p < 0.01, **p < 0.05, *p < 0.1. Wild bootstrap clustered (village) p-values in brackets.

    • View popup
    Table 6

    Detailed Time Use of Household Members, Difference-in-Differences

    The Number of Minutes Spent On:Types of Home ProductionTypes of Market WorkLeisure
    (8)
    Work in Home Garden
    (1)
    Caring for Children
    (2)
    Self-Care (Excluding Sleep)
    (3)
    Work on HH Farm
    (4)
    Regular Paid Work
    (5)
    Other Work
    (6)
    Transport to/from Work
    (7)
    Panel A: Males
    Water system−23.85−14.589−50.813***116.437***−2.886−11.5753.83475.343***
    (40.50)(9.072)(9.653)(37.310)(10.263)(17.238)(2.746)(11.992)
    [0.744][0.332][0.048][0.080][0.716][0.456][0.224][0.000]
    Mean (number of minutes)97.118.17153.84218.9521.5232.5513.58315.77
    Individual observations1,0901,0901,0901,0901,0901,0901,0901,090
    Number of villages3838383838383838
    R-squared0.3080.2500.5180.5180.1800.2010.2530.352
    Panel B: Females
    Water system−26.530−29.610−86.288***96.413***−20.733**−4.0317.806*87.53
    (30.140)(26.223)(16.645)(18.104)(10.005)(7.202)(3.886)(74.80)
    [0.564][0.420][0.028][0.064][0.084][0.464][0.252][0.512]
    Mean (number of minutes)72.1651.34165.3159.9432.5638.756.36262.38
    Household observations1,0941,0941,0941,0941,0941,0941,0941,094
    Number of villages3838383838383838
    R-squared0.3270.1660.5310.3280.1270.1280.2510.288
    • ↵Notes: Results are for difference-in-differences regressions. Time use data were collected for household members 12 years and older via the Kyrgyz Integrated Household Survey (2005 and 2010). Sample is limited to those villages (38 in total) that were eligible to receive the water infrastructure through the program. Time use is measured in number of minutes per 24-hour period (totaling 1440 minutes). All regressions include the following controls: (1) season dummies, (2) day of week dummies, (3) respondent age and gender, (3) size of respondent’s household, (4) district-year fixed effects, and (5) village fixed effects. Means are calculated for 2005. For a description of the time use categories, see the Online Appendix. Standard errors are clustered at the village level and in parentheses, with statistical significance denoted by: ***p < 0.01, **p < 0.05, *p < 0.1. Wild bootstrap clustered (village) p-values in brackets.

    • View popup
    Table 7

    Household Crop Harvests, Difference-in-Differences

    Log Fodder
    (1)
    Log Cereals
    (2)
    Categories of Cereals
    Log Wheat
    (3)
    Log Barley
    (4)
    Log Maize
    (5)
    Log Other Cereals
    (6)
    Panel A: Initial Specification
    Water system0.6070.3270.2880.411**1.140***0.085
    (0.554)(0.259)(0.217)(0.167)(0.252)(0.507)
    [0.540][0.510][0.436][0.082][0.000][0.738]
    Mean baseline production (kg)58.01746.01352.5344.439.2170.2
    Household observations188713911158452159723
    Number of villages404037261923
    R-squared0.4300.4860.5040.5840.6150.64
    Panel B: Include Score*Year Controls
    Water system0.6220.579***0.598***0.405*1.803***0.257
    (0.618)(0.171)(0.154)(0.201)(0.204)(0.678)
    [0.624][0.004][0.024][0.204][0.000][0.780]
    Mean baseline production (kg)59.51796.31392.2354.539.3156.2
    Household observations177813781149452155647
    Number of villages383836261722
    R-squared0.430.510.510.590.580.68
    • ↵Notes: Results are for difference-in-differences regressions using the household survey data collected via the Kyrgyz Integrated Household Survey (2003–2010). Sample is limited to those villages that were eligible to receive the water infrastructure through the program. “Water system” is an indicator of whether the village received the water infrastructure. Baseline means are calculated for 2003–2004. Amounts harvested are in log kilograms. All Columns include controls for (1) land characteristics (total plot size, number of land plots total, and proportion of land that is privately owned); (2) number of people and children 14 years and younger in a household; (3) district-year fixed effects; and (4) village fixed effects. Standard errors are clustered at the village level and in parentheses, with statistical significance denoted by: ***p < 0.01, **p < 0.05, *p < 0.1. Wild bootstrap clustered (village) p-values in brackets.

    • View popup
    Table 8

    Village-level Health Outcomes, Difference-in-Differences

    Acute IntestinalInfection Hepatitis A
    (1)(2)(3)(4)(5)(6)
    Panel A: Village-Level Incidence in Children 14 Years Old and Younger (per 100,000 Children)
    Water system−91.648*−137.544**−139.702**−22.161−12.69418.445
    (49.435)(52.953)(65.056)(44.333)(42.454)(52.256)
    Mean baseline incidence305.9201.7
    R-squared0.4550.3410.3400.3700.2630.270
    Panel B: Village-Level Incidence in Adults 15 Years and Older (per 100,000 Adults)
    Water system−11.240−10.880−11.07210.0061.322−1.912
    (18.680)(21.724)(27.633)(13.348)(13.334)(14.707)
    Mean baseline incidence106.951.71
    R-squared0.5260.3980.420.3120.2360.23
    Score * year controlsNoNoYesNoNoYes
    District-year fixed effectsYesNoNoYesNoNo
    Year fixed effectsNoYesYesNoYesYes
    Observations (at village level)2,2302,2301,9302,2302,2301,930
    Number of villages223223193223223193
    • ↵Notes: Results are for difference-in-differences calculations using village-level health data collected by the Kyrgyz Ministry of Health for the year between 2000 and 2009. Their definition of acute intestinal infections includes dysentery, giardia, enterobaeces, acariasis, and acute viral hepatitis. Sample is limited to those villages that were eligible to receive the water infrastructure through the program. All regressions include village fixed effects. Baseline means are calculated for 2000–2004. Standard errors are clustered at the village level and in parentheses, with statistical significance denoted by: ***p < 0.01, **p < 0.05, *p < 0.1.

    • View popup
    Table 9

    Returns to Labor

    Cereals Harvested (kg)
    (1)
    Cereals Harvested (kg)
    (2)
    Log Cereals Value (USD)
    (3)
    Cereals + Fodder Harvested (kg)
    (4)
    Cereals + Fodder Harvested (kg)
    (5)
    Log Cereals + Fodder Value (USD)
    (6)
    Total farm work (minutes/24-hour period)3.563***
    (0.959)
    3.420***
    (1.033)
    0.001**
    (0.000)
    3.438***
    (0.957)
    3.264***
    (1.040)
    0.003**
    (0.001)
    First-stage
     Coefficient “water system”337.62***355.84***659.33***337.62***355.84***522.27***
     F-statistic19.2219.1316.0019.2219.1318.44
    Baseline mean1946.792170.19382.551982.562208.42386.55
    Score * year controlsNoYesYesNoYesYes
    Household observations635592372635592521
    Number of villages373535373535
    R-squared0.5790.580.640.5810.580.56
    • ↵Notes: Data are collected via the KIHS (2005 and 2010). Total farm work is the total number of minutes that all working-age household members spent working on the farm in one 24-hour period. All specifications include village fixed effects, district-year fixed effects, and day-of-week fixed effects. The log cereal values are calculated using Kyrgyzstan-specific FAO Annual Producer Prices for each crop in the analysis. Standard errors are clustered at the village level and in parentheses, with ***p < 0.01, **p < 0.05, *p < 0.1.

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Journal of Human Resources: 52 (4)
Journal of Human Resources
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2 Oct 2017
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Water Works
Robyn C. Meeks
Journal of Human Resources Oct 2017, 52 (4) 1119-1153; DOI: 10.3368/jhr.52.4.0915-7408R1

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Robyn C. Meeks
Journal of Human Resources Oct 2017, 52 (4) 1119-1153; DOI: 10.3368/jhr.52.4.0915-7408R1
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  • Article
    • Abstract
    • I. Introduction
    • II. Background on Kyrgyzstan
    • III. Links between Water, Time, and Farm Production
    • IV. Empirical Framework
    • V. Data
    • VI. Impacts of Drinking Water Infrastructure
    • VII. Cost–Benefit Analysis
    • VIII. Conclusion
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