The socioeconomic distribution of choice quality: evidence from health insurance in the Netherlands

Benjamin R. Handel, Jonathan T. Kolstad, Thomas Minten and Johannes Spinnewijn

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: We study how choice quality relates to socio-economic factors using population-wide data on health insurance choices and utilization in the Netherlands. We document a striking choice quality gradient with respect to socio-economic status, finding that those with higher income, higher education, and training in quantitative fields make meaningfully better choices. Household income for the top 5% of decision makers, in terms of surplus captured, is almost three times higher than for those in the bottom 5%. When jointly including all factors, education degree and field of study are more important predictors of choice quality than income and other financial variables.

Keywords: 716485; STICERD (search for similar items in EconPapers)
JEL-codes: D31 G00 G22 I10 L15 (search for similar items in EconPapers)
Pages: 18 pages
Date: 2024-09-23
New Economics Papers: this item is included in nep-hea
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Published in American Economic Review: Insights, 23, September, 2024, 6(3), pp. 395 – 412. ISSN: 2640-205X

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Persistent link: https://EconPapers.repec.org/RePEc:ehl:lserod:121132

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