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Family formation and demand for health insurance

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  • Doiron, Denise
  • Kettlewell, Nathan

Abstract

We study how demand for health insurance responds to family formation using a unique panel of young Australian women. Our data allow us to simultaneously control for the influence of state dependence and unobserved heterogeneity as well as detailed information on children and child aspirations. We fi nd evidence that women purchase insurance in preparation for pregnancy but then transition out of insurance once they have fi nished family building. Children have a large, negative impact on demand for insurance, although this effect is smaller for those on higher incomes. We also fi nd that state dependence has a large impact on insurance demand. Our results are robust to a variety of alternative modelling strategies.

Suggested Citation

  • Doiron, Denise & Kettlewell, Nathan, 2018. "Family formation and demand for health insurance," Working Papers 2018-08, University of Sydney, School of Economics.
  • Handle: RePEc:syd:wpaper:2018-08
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