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Informality and the expansion of social protection programs: Evidence from Mexico

Oliver Azuara () and Ioana Marinescu ()

Journal of Health Economics, 2013, vol. 32, issue 5, 938-950

Abstract: Many countries are moving from employer-based to universal health coverage, which can generate crowd out. In Mexico, Seguro Popular provides public health coverage to the uninsured. Using the gradual roll-out of the system at the municipality level, we estimate that Seguro Popular had no effect on informality in the overall population. Informality did increase by 1.7% for less educated workers, but the wage gains for workers who switch between the formal and the informal sector were not significantly affected. This suggests that marginal workers do not choose between formal and informal jobs on the basis of health insurance coverage.

Keywords: Health insurance; Crowd-out; Development; Job mobility; Wages (search for similar items in EconPapers)
JEL-codes: I13 J21 J31 J32 O17 (search for similar items in EconPapers)
Date: 2013
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Journal of Health Economics is currently edited by J. P. Newhouse, A. J. Culyer, R. Frank, K. Claxton and T. McGuire

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