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The impact of an extension of workers’ health insurance on formal employment: Evidence from Ecuador

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  • Molina-Vera, Andrea

Abstract

This research focuses on the 2009 and 2010 Ecuadorian reforms that included formal workers’ children under 18 years old in the health insurance coverage. The study analyzes the impact on formal Ecuadorian employment caused by the extension of health insurance coverage to the workers’ children, using a difference-in-differences approach and repeated cross-sections of household surveys. Evidence reveals that, after the policy reform, individuals who had children were more likely to become formal workers than childless individuals. The impact is about 2 percentage points (about 8% above the pre-reform level). The result was mainly driven from unregistered to registered employment, and by parents with younger children.

Suggested Citation

  • Molina-Vera, Andrea, 2021. "The impact of an extension of workers’ health insurance on formal employment: Evidence from Ecuador," World Development, Elsevier, vol. 141(C).
    • Handle: RePEc:eee:wdevel:v:141:y:2021:i:c:s0305750x20304927
    DOI: 10.1016/j.worlddev.2020.105364
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    References listed on IDEAS

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    More about this item

    Keywords

    Labor supply; work incentives; social insurance; health insurance; informal employment;
    All these keywords.

    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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