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Health insurance and self-employment transitions in Vietnam

Author

Listed:
  • Le, Nga

    (UNU-MERIT)

  • Groot, Wim

    (UNU-MERIT, TIER and CAPHRI School for Public Health and Primary Care, Maastricht University)

  • Tomini, Sonila M.

    (UNU-MERIT)

  • Tomini, Florian

    (Centre for Primary Care and Public Health Queen Mary University, London,)

Abstract

Health insurance can have important effects on self-employment and self- employment transitions. However, there is a literature gap on the relationship between health insurance and self-employment in low and middle income countries, especially in the context of rapid expansion of health insurance in these countries. This paper examines this relationship in Vietnam with a focus on the comparison between the voluntary scheme for the informal sector (mostly self-employed workers) and the compulsory insurance for the formal sector (mostly wage workers). We employ a Probit model with selection on a panel from the Vietnamese Household Living Standards Surveys 2010-2014 to investigate the association between health insurance and self-employment entry and exit. We show that those with compulsory health insurance in Vietnam, the formal workers, are 10 percentage points less likely to enter self-employment compared to those having voluntary insurance. Regarding self-employment exit, people with compulsory insurance are more likely to exit self-employment compared to those covered by voluntary insurance. However, the effect size is relatively small.

Suggested Citation

  • Le, Nga & Groot, Wim & Tomini, Sonila M. & Tomini, Florian, 2019. "Health insurance and self-employment transitions in Vietnam," MERIT Working Papers 2019-008, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    • Handle: RePEc:unm:unumer:2019008
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    health insurance; self-employment; Vietnam; self-employment entry; self-employment exit;
    All these keywords.

    JEL classification:

    • I13 - Health, Education, and Welfare - - Health - - - Health Insurance, Public and Private
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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