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Does Health Insurance Make People Happier? Evidence from Massachusetts' Healthcare Reform

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  • Kim, Seonghoon

    (Singapore Management University)

  • Koh, Kanghyock

    (Korea University)

Abstract

We study the effects of Massachusetts' healthcare reform on individuals' subjective well-being. Using data from the Behavioral Risk Factor Surveillance System, we find that the reform significantly improved Massachusetts residents' overall life-satisfaction. This result is robust to various sensitivity checks and a falsification test. We also find that the reform improved mental health. An additional analysis on the Tennessee healthcare reform supports our findings' external validity. Using the reform as an instrument for health insurance coverage, we estimate its large impact on overall life-satisfaction. Our results provide novel evidence on the psychological consequences of Massachusetts' healthcare reform.

Suggested Citation

  • Kim, Seonghoon & Koh, Kanghyock, 2018. "Does Health Insurance Make People Happier? Evidence from Massachusetts' Healthcare Reform," IZA Discussion Papers 11879, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp11879
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    Cited by:

    1. Prieto, Joaquin, 2021. "A multidimensional approach to measuring economic insecurity: the case of Chile," LSE Research Online Documents on Economics 112490, London School of Economics and Political Science, LSE Library.
    2. Joaquín Prieto, 2021. "A multidimensional approach to measuring economic insecurity: The case of Chile," Working Papers 591, ECINEQ, Society for the Study of Economic Inequality.
    3. Joaquín Prieto, 2022. "A Multidimensional Approach to Measuring Economic Insecurity: The Case of Chile," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 163(2), pages 823-855, September.
    4. Prieto Suarez, Joaquin, 2022. "A multidimensional approach to measuring economic insecurity: the case of Chile," LSE Research Online Documents on Economics 114623, London School of Economics and Political Science, LSE Library.
    5. Seonghoon Kim & Kanghyock Koh, 2020. "Does Early Access To Pension Wealth Improve Health?," Economic Inquiry, Western Economic Association International, vol. 58(4), pages 1783-1794, October.

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    More about this item

    Keywords

    health insurance; life satisfaction; happiness; subjective well-being; Massachusetts healthcare reform;
    All these keywords.

    JEL classification:

    • I13 - Health, Education, and Welfare - - Health - - - Health Insurance, Public and Private
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being

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