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Can a Universal Public Health Insurance Policy Dent Vulnerability to Poverty? Empirical Evidence from Rural India

Author

Listed:
  • Sunil Khosla

    (Sunil Khosla (corresponding author) is an Assistant Professor at the VIT-AP School of Social Sciences and Humanities (VISH), VIT-AP University, Amaravati, Andhra Pradesh, India. E-mail: sunilkhosla1993@gmail.com)

  • Pradyot Ranjan Jena

    (Pradyot Ranjan Jena is a Professor at the School of Humanities, Social Sciences and Management, National Institute of Technology Karnataka, Surathkal, Mangalore, Karnataka, India. E-mail: pradyotjena@nitk.edu.in)

Abstract

Idiosyncratic shocks, mainly health shocks, are common among rural households in developing countries, and as a result, many non-poor households fall into poverty and poor households remain poor. This study investigates the impact of a universal public health insurance policy, namely Rashtriya Swasthya Bima Yojana (RSBY), on household vulnerability to poverty (VtP) in rural India. Using 17,468 national-level household data, household VtP has been estimated using feasible generalised least squares (FGLS), and the impact of a health insurance policy on household VtP has been investigated using propensity score matching (PSM) and endogenous switching regression (ESR). FGLS estimates show that VtP is found to be 33 per cent compared to a currently classified poverty headcount rate of 27 per cent. PSM and ESR results indicate that access to RSBY significantly reduces household VtP, especially in less developed states. JEL codes: I00, I13, I15, I18, I30, I32, I38, I39

Suggested Citation

  • Sunil Khosla & Pradyot Ranjan Jena, 2024. "Can a Universal Public Health Insurance Policy Dent Vulnerability to Poverty? Empirical Evidence from Rural India," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 18(3-4), pages 255-281, November.
    • Handle: RePEc:sae:mareco:v:18:y:2024:i:3-4:p:255-281
    DOI: 10.1177/00252921241308210
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • I00 - Health, Education, and Welfare - - General - - - General
    • I13 - Health, Education, and Welfare - - Health - - - Health Insurance, Public and Private
    • I15 - Health, Education, and Welfare - - Health - - - Health and Economic Development
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • I39 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Other

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