Effects of health insurance on labour supply: evidence from the health care fund for the poor in Vietnam |
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| Authors: | Nga Lê Wim Groot Sonila M. Tomini Florian Tomini |
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| Affiliation: | 1. UNU-MERIT/MGSoG, Maastricht University, Maastricht, Netherlandsnga.le@maastrichtuniversity.nl;3. TIER and CAPHRI School for Public Health and Primary Care, Maastricht University, Maastricht, Netherlands;4. UNU-MERIT/MGSoG, Maastricht University, Maastricht, Netherlands;5. Centre for Primary Care and Public Health, Queen Mary University of London, London, UK |
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| Abstract: | The expansion of health insurance in emerging countries raises concerns about the unintended negative effects of health insurance on labour supply. This article examines the labour supply effects of the Health Care Fund for the Poor (HCFP) in Vietnam in terms of the number of work hours per month and labour force participation (the probability of employment). Employing various matching methods combined with a Difference-in-Differences approach on the Vietnam Household Living Standard Surveys 2002–2006, we show that the HCFP, which aims to provide poor people and disadvantaged minority groups with free health insurance, has a negative effect on labour supply. This is manifested in both the average number of hours worked per month and the probability of employment, suggesting the income effect of the HCFP. Interestingly, the effects are mainly driven by the non-poor recipients living in rural areas, raising the question of the targeting strategy of the programme. |
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| Keywords: | Health insurance labour supply Vietnam health care fund for the poor |
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