Can Insurance Mitigate Household Businesses’ Vulnerability to Health Shocks?
Household Businesses (HB) are vulnerable to health shocks affecting all members of the household to which they belong. The monetary costs of these shocks affect HB revenue and investment. Health insurance, by offering financial protection against catastrophic health expenditures and increasing health care utilisation, should mitigate this specific vulnerability. A 2005 reform giving free health insurance to children under 6 in Vietnam introduced a discontinuity in the coverage of children, and lets evaluating the influence of insurance in this regard. The change allows comparing otherwise similar household businesses that differ only by the proportion of insured children in the household. The results show that health insurance did not decrease health expenditures, and neither increased the number of days during which the HB operated. The potential of health insurance to mitigate the effect of health shocks on informal microenterprises is conditional on the actual level of financial protection offered –which was low in this context. I nevertheless evidence a potential peace of mind effect: health insurance can stimulate investment, at least temporarily, even while no actual mitigating effect exists.
|Date of creation:||Oct 2016|
|Contact details of provider:|| Postal: 4, rue d'Enghien, 75010 Paris|
Phone: + 33 1 53 24 14 50
Fax: + 33 1 53 24 14 51
Web page: http://www.dial.ird.fr/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Jonathan Gruber & Nathaniel Hendren & Robert M. Townsend, 2014. "The Great Equalizer: Health Care Access and Infant Mortality in Thailand," American Economic Journal: Applied Economics, American Economic Association, vol. 6(1), pages 91-107, January.
- Jowett, M. & Contoyannis, P. & Vinh, N. D., 2003. "The impact of public voluntary health insurance on private health expenditures in Vietnam," Social Science & Medicine, Elsevier, vol. 56(2), pages 333-342, January.
- Cuong Nguyen, 2016. "The impact of health insurance programs for children: evidence from Vietnam," Health Economics Review, Springer, vol. 6(1), pages 1-15, December.
- Rebecca L. Thornton & Laurel E. Hatt & Erica M. Field & Mursaleena Islam & Freddy Solís Diaz & Martha Azucena González, 2010. "Social security health insurance for the informal sector in Nicaragua: a randomized evaluation," Health Economics, John Wiley & Sons, Ltd., vol. 19(S1), pages 181-206, September.
- Ardeshir Sepehri & Sisira Sarma & Wayne Simpson, 2006. "Does non-profit health insurance reduce financial burden? Evidence from the Vietnam living standards survey panel," Health Economics, John Wiley & Sons, Ltd., vol. 15(6), pages 603-616.
- Wagstaff, Adam, 2007. "The economic consequences of health shocks: Evidence from Vietnam," Journal of Health Economics, Elsevier, vol. 26(1), pages 82-100, January.
- Palmer, Michael & Mitra, Sophie & Mont, Daniel & Groce, Nora, 2015. "The impact of health insurance for children under age 6 in Vietnam: A regression discontinuity approach," Social Science & Medicine, Elsevier, vol. 145(C), pages 217-226.
- Nguyen, Ha & Knowles, James, 2010. "Demand for voluntary health insurance in developing countries: The case of Vietnam's school-age children and adolescent student health insurance program," Social Science & Medicine, Elsevier, vol. 71(12), pages 2074-2082, December.
When requesting a correction, please mention this item's handle: RePEc:dia:wpaper:dt201610. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Loic Le Pezennec)
If references are entirely missing, you can add them using this form.