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HEALTH, HEALTH INSURANCE, AND INEQUALITY

Chaoran Chen, Zhigang Feng and Jiaying Gu

International Economic Review, 2025, vol. 66, issue 1, 107-141

Abstract: This article identifies a “health premium” of insurance coverage: insured individuals are more likely to maintain good health or recover from poor health. We introduce this feature into a prototypical macrohealth model and estimate the baseline economy by matching the observed joint distribution of health insurance, health, and income over the life cycle. Quantitative analysis reveals that an individual's insurance status has a substantial and persistent impact on health. Providing universal health coverage would narrow health and life expectancy gaps, with a mixed effect on the income distribution in the absence of any additional redistribution of income or wealth.

Date: 2025
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https://doi.org/10.1111/iere.12722

Related works:
Working Paper: Health, Health Insurance, and Inequality (2024) Downloads
Working Paper: Health, Health Insurance, and Inequality (2022) Downloads
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International Economic Review is currently edited by Michael O'Riordan and Dirk Krueger

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