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Health insurance coverage and firm performance: Evidence using firm level data from Vietnam

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  • Yamada, Hiroyuki
  • Vu, Tien Manh

Abstract

In literature, there is limited direct evidence regarding the effect of health insurance coverage on firm performance and worker productivity. In this paper, we study the impacts of health insurance on medium and large-scale domestic private firms' performance and productivity in Vietnam, using a large firm level census dataset. We deploy propensity-score matching methods, and find statistically positive health insurance effects on both aggregate profit and profit per worker for both complying and non-complying medium and large-scale firms. Given the full sample results, we recommend an improvement in government monitoring as one of the important policy options to induce medium and large-scale firms to contribute to health insurance premiums for their employees.

Suggested Citation

  • Yamada, Hiroyuki & Vu, Tien Manh, 2016. "Health insurance coverage and firm performance: Evidence using firm level data from Vietnam," AGI Working Paper Series 2016-19, Asian Growth Research Institute.
    • Handle: RePEc:agi:wpaper:00000116
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    References listed on IDEAS

    as
    1. Naoki Aizawa & Hanming Fang, 2020. "Equilibrium Labor Market Search and Health Insurance Reform," Journal of Political Economy, University of Chicago Press, vol. 128(11), pages 4258-4336.
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    3. James J. Heckman & Hidehiko Ichimura & Petra E. Todd, 1997. "Matching As An Econometric Evaluation Estimator: Evidence from Evaluating a Job Training Programme," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 64(4), pages 605-654.
    4. Daniel Cotlear & Somil Nagpal & Owen Smith & Ajay Tandon & Rafael Cortez, 2015. "Going Universal," World Bank Publications - Books, The World Bank Group, number 22011.
    5. Marco Caliendo & Sabine Kopeinig, 2008. "Some Practical Guidance For The Implementation Of Propensity Score Matching," Journal of Economic Surveys, Wiley Blackwell, vol. 22(1), pages 31-72, February.
    6. Teresa B. Gibson & A. Mark Fendrick & Michael E. Chernew, 2012. "Cost-Sharing and Productivity," NBER Working Papers 18402, National Bureau of Economic Research, Inc.
    7. World Bank, 2015. "World Development Indicators 2015," World Bank Publications - Books, The World Bank Group, number 21634.
    8. World Bank, 2016. "World Development Indicators 2016," World Bank Publications - Books, The World Bank Group, number 23969.
    9. Midori Matsushima & Hiroyuki Yamada, 2013. "Public Health Insurance in Vietnam towards Universal Coverage: Identifying the challenges, issues, and problems in its design and organizational practices," OSIPP Discussion Paper 13E003, Osaka School of International Public Policy, Osaka University.
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    More about this item

    Keywords

    Health insurance; Medium and large-scale firms; Propensity-score matching; Vietnam; Health insurance; Medium and large-scale firms; Propensity-score matching; Vietnam; D22; I13; I15; I18; O25;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • I13 - Health, Education, and Welfare - - Health - - - Health Insurance, Public and Private
    • I15 - Health, Education, and Welfare - - Health - - - Health and Economic Development
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • O25 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Industrial Policy

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