Spillovers from health insurance to the US underground economy

Rajeev Goel and James Saunoris

Applied Economics Letters, 2015, vol. 22, issue 6, 474-482

Abstract: Employing recent data on the prevalence of the underground economy across states in the United States, this article uniquely studies the nexus between health insurance coverage and the underground economy. We find a positive effect of health insurance coverage on the spread of the underground sector. Upon disaggregation, while private health coverage promotes the underground sector, government health insurance has the opposite effect.

Date: 2015
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DOI: 10.1080/13504851.2014.950790

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