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Does Population Sorting through Internal Migration Increase Healthcare Costs and Needs in Peripheral Regions?

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Listed:
  • Kulshreshtha, Shobhit

    (Tilburg University)

  • Salm, Martin

    (Tilburg University)

  • Wübker, Ansgar

    (RWI)

Abstract

Large regional disparities in health and healthcare costs prevail in many countries, but our understanding of the underlying causes is still limited. This study shows for the case of the Netherlands that population sorting through internal migration can explain a substantial share, around 28%, of regional variation in healthcare costs. Internal migration during the 1998-2018 period increases average healthcare costs in peripheral provinces by up to 3%. Most of this effect can be attributed to selective migration. We find similar results for risk scores, a measure of healthcare needs. The Dutch risk equalization scheme compensates only partially for these effects.

Suggested Citation

  • Kulshreshtha, Shobhit & Salm, Martin & Wübker, Ansgar, 2022. "Does Population Sorting through Internal Migration Increase Healthcare Costs and Needs in Peripheral Regions?," IZA Discussion Papers 15559, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp15559
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    References listed on IDEAS

    as
    1. Layton, Timothy J. & McGuire, Thomas G. & van Kleef, Richard C., 2018. "Deriving risk adjustment payment weights to maximize efficiency of health insurance markets," Journal of Health Economics, Elsevier, vol. 61(C), pages 93-110.
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    More about this item

    Keywords

    regional variation in healthcare costs; internal migration; movers approach; regional disparities;
    All these keywords.

    JEL classification:

    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
    • I14 - Health, Education, and Welfare - - Health - - - Health and Inequality
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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