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Living Happily Ever After? The Effect of Taiwan’s National Health Insurance on the Happiness of the Elderly

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  • Shao-Hsun Keng
  • Shin-Yi Wu

Abstract

The implementation of Taiwan’s National Health Insurance (NHI) in 1995 has created a quasi-experiment that permits us to draw causal inference for the effect of the NHI on the happiness and life satisfaction. The NHI is expected to have a positive effect on happiness because it not only improves the health and mitigates the uncertainty in financial losses due to health shocks, but also alleviates health inequality in the population through equal access to care. The results show that the NHI has a significant effect on happiness and life satisfaction. The effect ranges from 3 to 30 % depending on the measures of happiness. Nonetheless, the effect of the NHI in narrowing happiness inequality across socioeconomic status (SES) is significant for health and income groups only while its effect on education- and gender-happiness gradients are insignificant. The increase in the probability of being happy or satisfied with life among the least healthy group is 0.08 % points higher than that of the healthier ones. Earlier studies have shown that the effects of health insurance on health and disparity in health across SES groups are small. In contrast, our findings suggest that the welfare impact of the NHI is quite large. Copyright Springer Science+Business Media Dordrecht 2014

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  • Shao-Hsun Keng & Shin-Yi Wu, 2014. "Living Happily Ever After? The Effect of Taiwan’s National Health Insurance on the Happiness of the Elderly," Journal of Happiness Studies, Springer, vol. 15(4), pages 783-808, August.
    • Handle: RePEc:spr:jhappi:v:15:y:2014:i:4:p:783-808
    DOI: 10.1007/s10902-013-9449-4
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    1. Sergei Guriev & Ekaterina Zhuravskaya, 2009. "(Un)happiness in Transition," Journal of Economic Perspectives, American Economic Association, vol. 23(2), pages 143-168, Spring.
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    3. Gabriela Mihaela Muresan & Codruta Mare & Dan Tudor Lazar & Sorin Paul Lazar, 2023. "Can Health Insurance Improve the Happiness of the Romanian People?," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 25(64), pages 903-903, August.
    4. Ichiro Sasaki & Katsunori Kondo & Naoki Kondo & Jun Aida & Hiroshi Ichikawa & Takashi Kusumi & Naoya Sueishi & Yuichi Imanaka, 2018. "Are pension types associated with happiness in Japanese older people?: JAGES cross-sectional study," PLOS ONE, Public Library of Science, vol. 13(5), pages 1-14, May.
    5. repec:bof:bofitp:urn:nbn:fi:bof-201508181355 is not listed on IDEAS
    6. Sisi Yang & Katja Hanewald, 2022. "Life Satisfaction of Middle-Aged and Older Chinese: The Role of Health and Health Insurance," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 160(2), pages 601-624, April.
    7. Yuri Sasaki & Yugo Shobugawa & Ikuma Nozaki & Daisuke Takagi & Yuiko Nagamine & Masafumi Funato & Yuki Chihara & Yuki Shirakura & Kay Thi Lwin & Poe Ei Zin & Thae Zarchi Bo & Tomofumi Sone & Hla Hla W, 2022. "Association between Happiness and Economic Status among Older Adults in Two Myanmar Regions," IJERPH, MDPI, vol. 19(6), pages 1-13, March.
    8. repec:hal:spmain:info:hdl:2441/7fst0pcf5j8cr99e1nuobt97rn is not listed on IDEAS
    9. Haining Wang & Zhiming Cheng & Russell Smyth, 2015. "Does Consuming More Make You Happier? Evidence from Chinese Panel Data," Monash Economics Working Papers 29-15, Monash University, Department of Economics.
    10. repec:zbw:bofitp:urn:nbn:fi:bof-201508181355 is not listed on IDEAS
    11. Haining Wang & Zhiming Cheng & Russell Smyth, 2015. "Does Consuming More Make You Happier? Evidence from Chinese Panel Data," Monash Economics Working Papers 29-15, Monash University, Department of Economics.
    12. Mingzhi Hu & Guocheng Xiang & Shihu Zhong, 2021. "The Burden of Social Connectedness: Do Escalating Gift Expenditures Make You Happy?," Journal of Happiness Studies, Springer, vol. 22(8), pages 3479-3497, December.
    13. Lin, Benxi & Du, Ruiying & Dong, Zekuan & Jin, Shaosheng & Liu, Weipin, 2020. "The impact of foreign direct investment on the productivity of the Chinese forest products industry," Forest Policy and Economics, Elsevier, vol. 111(C).
    14. Ruut Veenhoven & Felicia Chiperi & Xin Kang & Martijn Burger, 2021. "Happiness and Consumption: A Research Synthesis Using an Online Finding Archive* â€," SAGE Open, , vol. 11(1), pages 21582440209, March.
    15. Xiaoting Zheng & Jiayue Chen & Yipeng Li, 2021. "The association between charitable giving and happiness: Evidence from the Chinese General Social Survey," Quality & Quantity: International Journal of Methodology, Springer, vol. 55(6), pages 2103-2138, December.
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