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Healthy to Work: The Impact of Free Public Healthcare on Health Status and Labor Supply in Jamaica

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  • Beuermann, Diether
  • Pecha, Camilo

Abstract

This study examines whether Jamaica's free public healthcare policy affectedhealth status and labor supply of adult individuals. It compares outcomes of adults without health insurance versus their insured counterparts, before and after policy implementation. The study finds that the policy reduced both the likelihood of suffering illnesses with associated lost work days and the number of lost days due to illnesses by 28.6 percent and 34 percent, respectively. Consistent with the absence of "employment lock", no effects are found on employment at the extensive margin. However, consistent with a reduced number of days lost due to illnesses, there is a positive effect of 2.15 additional weekly labor hours. This is primarily a labor supply effect as the study shows that both reported and imputed hourly wages decreased by 0.15 and 0.06 log-points respectively. Back-of-the-envelope calculations suggest that the policy added a yearly average of US$PPP 26.6 million worth of net real production to the economy during the period 2008-12.

Suggested Citation

  • Beuermann, Diether & Pecha, Camilo, 2016. "Healthy to Work: The Impact of Free Public Healthcare on Health Status and Labor Supply in Jamaica," IDB Publications (Working Papers) 7970, Inter-American Development Bank.
    • Handle: RePEc:idb:brikps:7970
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    File URL: https://publications.iadb.org/publications/english/document/Healthy-to-Work-The-Impact-of-Free-Public-Healthcare-on-Health-Status-and-Labor-Supply-in-Jamaica.pdf
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    Cited by:

    1. Doi, Yoko & McKenzie, David & Zia, Bilal, 2014. "Who you train matters: Identifying combined effects of financial education on migrant households," Journal of Development Economics, Elsevier, vol. 109(C), pages 39-55.
    2. Gordon H. Hanson, 2007. "Emigration, Labor Supply, and Earnings in Mexico," NBER Chapters, in: Mexican Immigration to the United States, pages 289-328, National Bureau of Economic Research, Inc.
    3. Shaun A. Golding & Katherine J. Curtis, 2013. "Migration and rural development: resettlement, remittances and amenities," Chapters, in: Gary Paul Green (ed.), Handbook of Rural Development, chapter 6, pages i-ii, Edward Elgar Publishing.

    More about this item

    Keywords

    health policy; health insurance;

    JEL classification:

    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
    • I1 - Health, Education, and Welfare - - Health
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean

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