Publicly provided healthcare and migration

Publicly provided healthcare has received growing attention. Debates have been fuelled by evidence on improved health and reduced poverty, and concerns over adverse labour market effects; concerns that are, to date, only supported by mixed empirical findings. This article examines whether publicly provided healthcare influences the decision to migrate. The spatial and temporal variation in the expansion of a non-contributory health insurance programme in Mexico, combined with the panel dimension and the timing of household survey data allows causal identification of the effect of increased coverage on migration. Difference-in-differences estimates reveal that accessing healthcare for free raises internal migration. The effect on international migration, costlier by nature, is statistically insignificant. Potential mechanisms include better health, the alleviation of financial constraints and a greater propensity to work. Results point to the relevance of including household members who have migrated in assessing the impacts of social health policies. They suggest that publicly provided healthcare could have multiplier effects on economic development and welfare by enabling labour force detachment of working-age members in affiliated households.