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Universal health care and informal labor markets : the case of Thailand

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  • Wagstaff, Adam
  • Manachotphong, Wanwiphang

Abstract

This paper explores the possibility that universal health coverage may inadvertently result in distorted labor market choices, with workers preferring informal employment over formal employment, leading to negative effects on investment and growth, as well as reduced protection against non-health risks and the income risks associated with ill health. It explores this hypothesis in the context of the Thai universal coverage scheme, which was rolled out in four waves over a 12-month period starting in April 2001. It identifies the effects of universal coverage through the staggered rollout, and gains statistical power by using no less than 68 consecutive labor force surveys, each containing an average of 62,000 respondents. The analysis finds that universal coverage appears to have encouraged employment especially among married women, to have reduced formal-sector employment among married men but not among other groups, and to have increased informal-sector employment especially among married women. The largest positive informal-sector employment effects are found in the agricultural sector.

Suggested Citation

  • Wagstaff, Adam & Manachotphong, Wanwiphang, 2012. "Universal health care and informal labor markets : the case of Thailand," Policy Research Working Paper Series 6116, The World Bank.
    • Handle: RePEc:wbk:wbrwps:6116
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    References listed on IDEAS

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    6. Pannarunothai, Supasit & Patmasiriwat, Direk & Srithamrongsawat, Samrit, 2004. "Universal health coverage in Thailand: ideas for reform and policy struggling," Health Policy, Elsevier, vol. 68(1), pages 17-30, April.
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    Cited by:

    1. del Valle, Alejandro, 2021. "The effects of public health insurance in labor markets with informal jobs: Evidence from Mexico," Journal of Health Economics, Elsevier, vol. 77(C).
    2. Bredenkamp, Caryn & Evans, Timothy & Lagrada, Leizel & Langenbrunner, John & Nachuk, Stefan & Palu, Toomas, 2015. "Emerging challenges in implementing universal health coverage in Asia," Social Science & Medicine, Elsevier, vol. 145(C), pages 243-248.
    3. Nga Le Thi Quynh & Groot, Wim & Tomini, Sonila M. & Tomini, Florian, 2017. "Effects of health insurance on labour supply: A systematic review," MERIT Working Papers 2017-017, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    4. Wei Si, 2021. "Public health insurance and the labor market: Evidence from China's Urban Resident Basic Medical Insurance," Health Economics, John Wiley & Sons, Ltd., vol. 30(2), pages 403-431, February.

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    More about this item

    Keywords

    Health Monitoring&Evaluation; Labor Markets; Population Policies; Labor Policies; Access to Finance;
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