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Is Formal Employment Discouraged by the Provision of Free. Health Services to the Uninsured ? Evidence From a Natural Experiment in Mexico

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  • Alejandro Del Valle

    (PSE - Paris-Jourdan Sciences Economiques - CNRS : UMR8545 - École des Hautes Études en Sciences Sociales (EHESS) - École des Ponts ParisTech (ENPC) - École normale supérieure [ENS] - Paris - Institut national de la recherche agronomique (INRA), EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris)

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    Abstract

    This article analyzes whether the large scale provision of non-contributory health services encourages workers to move away from jobs that pay contributions to social security (formal employment). Using a difference-in-differences design, that exploits the variation generated by the municipal level roll-out of an intervention of this kind in Mexico, this paper finds that contemporaneous program exposure has no impact on the ratio of formal to total employed and that lagged exposure leads only to a small (0.78 percentage points) decrease. Two proxies of spillover effects further reveal that this estimate is robust and that the upper-bound of program effect is only moderately larger (1.5 percentage points).

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    Bibliographic Info

    Paper provided by HAL in its series PSE Working Papers with number halshs-00838000.

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    Date of creation: 24 Jun 2013
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    Handle: RePEc:hal:psewpa:halshs-00838000

    Note: View the original document on HAL open archive server: http://halshs.archives-ouvertes.fr/halshs-00838000
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    Related research

    Keywords: Labor Markets ; Health Provision ; Informality ; Spillover Effects;

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    1. Reyes Aterido & Mary Hallward-Driemeier & Carmen Pagés-Serra, 2011. "Does Expanding Health Insurance Beyond Formal-Sector Workers Encourage Informality?: Measuring the Impact of Mexico's Seguro Popular," IDB Publications 81001, Inter-American Development Bank.
    2. Azuara, Oliver & Marinescu, Ioana, 2011. "Informality and the expansion of social protection programs," MPRA Paper 35073, University Library of Munich, Germany.
    3. Patricio Aroca & Mariano Bosch & William F. Maloney, 2005. "Spatial Dimensions of Trade Liberalization and Economic Convergence: Mexico 1985--2002," World Bank Economic Review, World Bank Group, vol. 19(3), pages 345-378.
    4. Helena Ribe & David A. Robalino & Ian Walker, 2010. "Achieving Effective Social Protection for All in Latin America and the Caribbean : From Right to Reality," World Bank Publications, The World Bank, number 2479, October.
    5. Papke, Leslie E. & Wooldridge, Jeffrey M., 2008. "Panel data methods for fractional response variables with an application to test pass rates," Journal of Econometrics, Elsevier, vol. 145(1-2), pages 121-133, July.
    6. Anderson, Michael L., 2008. "Multiple Inference and Gender Differences in the Effects of Early Intervention: A Reevaluation of the Abecedarian, Perry Preschool, and Early Training Projects," Journal of the American Statistical Association, American Statistical Association, vol. 103(484), pages 1481-1495.
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