The labor-supply effects of extending health insurance to workers’ partners: The experience of Uruguay
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Resumen
In December 2010 Health Insurance in Uruguay was extended to the partners of workers in the formal labor market. This extension may have modified the incentives to participate in the formal and informal labor markets, potentially reducing overall participation or the share of individuals in the formal labor market whose partners were formally employed. Using a difference-in-differences methodology, effects of the Health Insurance expansion are estimated by comparing individuals affected by the policy over time with similar but unaffected individuals. We find negative and statistically significant effects: the policy extension reduces the share of the economically-active population in the formal labor market by 0.95 percentage points and women in formal employment in the private sector by 2.13 percentage points. In addition to these effects, we find significant heterogeneous effects by age, educational level, and the formality conditions of the partners. We also find an effect of the policy on occupation, though of smaller magnitude and not always statistically-significant.
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Referencias
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Bérgolo, M. y Cruces, G. (2014). Work and tax evasion incentive effects of social insurance programs. Evidence from an employment-based benefit extension. Journal of Public Economics. PUBEC-03449; No of Pages 18.
Blau, F. y Kahn, L. (2005), Changes in the Labor Supply Behavior of Married Women: 1980-2000, Working Paper 11230, National Bureau of Economic Research.
Bosch, M. y Manacorda, M. (2012). Social Policies and Labor Market Outcomes in Latin America and the Caribbean: A Review of the Existing Evidence. Ocasional paper No. 32. Center for Economic Performance.
Bound, J., Burkhauser, R. V., 1999. Economic analysis of transfer programs targeted on people with disabilities. En: Ashenfelter, O., Card, D. (Eds.), Handbook of Labor Economics, Volume 3. Elsevier, Amsterdam, pp. 3417-3528.
Buchmueller, T. y Valletta, R. (1999). “The Effect of Health Insurance on Married Female Labor Supply,” Journal of Human Resources 34(1): 42-70.
Chou, Y. y Staiger, D. (2001). “Health Insurance and Female Labor Supply in Taiwan,” Journal of Health Economics, 20(2): 187-211.
Eissa, N. y Hoynes, H. (1999). The earned income tax credit and the labor supply of married couples. Working paper No. E99-267. University of California at Berkeley.
Eissa, N. y Hoynes, H. (2004). Taxes and the labor market participation of married couples: the earned income tax credit. Journal of Public Economics 88, 1931–1958.
Espino, A., Leites, M. y Machado, A. (2009). Cambios en la conducta de la oferta laboral femenina: el incremento de la actividad de las mujeres casadas. Diagnóstico e implicancias. Uruguay: 1981 -2006. DT Iecon No 03/09.
Espino, A., Isabella, F., Leites, M. y Machado, A. (2014). Diferencias de género en la elasticidad intertemporal y no compensada de la oferta laboral. Pruebas para el caso uruguayo. El Trimestre Económico, vol. LXXXI (2), núm. 322, abril-junio de 2014, pp. 479-515
Galiani, S. y Weinschelbaum, F. (2012). Modeling Informality Formally: Households and Firms. Economic Inquiry, Western Economic Association International, vol. 50(3).
Gasparini, L. y Tornarolli, L. (2009). Labor Informality in Latin America and the Caribbean: Patterns and Trends from Houehold Surveys Microdata. Documento de Trabajo 46, CEDLAS, Universidad Nacional de La Plata.
Goldin, C. (2006). The Quiet Revolution That Transformed Women’s Employment, Education, and Family. Ely Lecture, American Economic Association Meetings, Boston MA (Jan. 2006), published in American Economic Review, Papers and Proceedings 96 (May 2006), pp. 1-21.
Gruber, J. y Hanratty, M. (1995) The Labor-Market Effects of Introducing National Health Insurance: Evidence from Canada. Journal of Business & Economic Statistics, Vol 13 No 2: pp 163-173.
Gruber, J. y Madrian, B. (1997). “Employment Separation and Health Insurance Coverage”, Journal of Public Economics 66(3): pp 349-382.
Hoynes, H. (1996). “Welfare Transfers in Two-Parent Families: Labor Supply and Welfare
Participation Under AFDC-UP”. Econometrica, 64 (2): 295-332.
Krueger, A. B., Meyer, B. D., 2002. Labor supply effects of social Insurance. En: Auerbach, A., Feldstein, M. (Eds.), Handbook of Public Economics, Volume 4. North-Holland, Amsterdam, pp. 2327-2392.
Levy, S. (2008). Good Intentions, Bad Outcomes: Social Policy, Informality and Economic Growth in Mexico. Brookings Institution Press.
Maloney, W. (1999). Does Informality Imply Segmentation in Urban Labor Markets? Evidence from sectorial transitions in Mexico. Washington D.C., Banco Mundial, Economic Review.
Maloney, W. (2003). Informality Revisited. Washington, World Bank policy research working paper 2965.
Moffitt, R. (2002) “Economic Effects of Means tested Transfers in the US”. National Bureau of
Economic Research Working Paper 8730.
Olson, C. (1998). “A Comparison of Parametric and Semiparametric Estimates of the Effect of Spousal Health Insurance Coverage on Weekly Hours Worked by Wives,” Journal of Applied Econometrics, 13(5): 543-565.
Perry, G., Arias, Omar, F., Pablo, Maloney, W., Mason, A. y Saavedra-Chanduvi, J. (2007). Informalidad: Escape y exclusión. Washington D.C., Estudios del Banco Mundial sobre América Latina y el Caribe.
Schone, B. y Vistnes, J. (2000). “The Relationship Between Health Insurance and Labor Force Decisions: An Analysis of Married Women” unpublished Paper (Agency for Healthcare Research and Quality).
Tamm, M. (2009). "Child Benefit Reform and Labor Market Participation," Ruhr Economic Papers 97, Rheinisch-Westfälisches Institut für Wirtschaftsforschung (RWI), University of Duisburg-Essen.
Todd, P. (2006). “Evaluating Social Programs with Endogenous Program Placement and Selection of the Treated”, draft of chapter under preparation for Handbook of Agricultural Economics.
Wellington, J. y Cobb-Clark, D. (2000). “The Labor-Supply Effects of Universal Health Coverage: What Can We Learn From Individuals with Spousal Coverage?,” en Worker Well-Being: Research in Labor Economics, Volumen 19 (Elsevier Science: Amsterdam).