Health insurance premium changes and labor supply: Evidence from a low-income country

Emmanuel Nshakira Rukundo, Sarah Schroeder, Mehtap Hisarciklilar and Andrew D. McKay

No 1103, Ruhr Economic Papers from RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen

Abstract: We study the effect of a health insurance premium change on labour supply. Using a matching with difference-in-differences strategy on a pooled nationwide cross-sectional and panel data, we find that both premium waivers and premium increased led to a reduction in labor supply by almost similar margins. We also show that the policy change reduced the probability of wage employment and increased domestic labour supply,, pointing to potential income effects for waivers and potential manipulation effects for premium increases. Our results are robust fo various specifications and raise concerns of the unintended effects of popular but likely inefficient community-based welfare targeting methods.

Keywords: Health insurance; premium changes; labor supply; Rwanda (search for similar items in EconPapers)
JEL-codes: I13 I15 I18 J01 (search for similar items in EconPapers)
Date: 2024
New Economics Papers: this item is included in nep-lab
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:rwirep:308800

DOI: 10.4419/96973281

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