Does Expanding Health Insurance beyond Formal-Sector Workers Encourage Informality? Measuring the Impact of Mexico’s Seguro Popular
Seguro Popular was introduced in 2002 to provide health insurance to the 50 million Mexicans without Social Security. This paper tests whether the program has had unintended consequences, distorting workers' incentives to operate in the inform...
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| Format: | Policy Research Working Paper |
| Language: | English |
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2012
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| Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110831083052 http://hdl.handle.net/10986/3548 |
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okr-10986-35482021-04-23T14:02:10Z Does Expanding Health Insurance beyond Formal-Sector Workers Encourage Informality? Measuring the Impact of Mexico’s Seguro Popular Aterido, Reyes Hallward-Driemeier, Mary Pages, Carmen AGGREGATE PRODUCTIVITY BABIES BUSINESS CYCLE CITIES CLINICS DEPENDANTS DEPENDENT CHILDREN DEVELOPING COUNTRIES DEVELOPMENT POLICY DWELLING ECONOMIC GROWTH ECONOMICS EDUCATED WOMEN EDUCATIONAL ATTAINMENT ELDERLY EMPLOYMENT STATUS EQUALITY EXTENDED FAMILIES FAMILIES FEMALE FEMALE HEADED HOUSEHOLDS FORMAL EDUCATION FORMAL LABOR MARKET FORMAL SECTOR WORKERS GENDER HEALTH CARE HEALTH CARE ACCESS HEALTH EFFECTS HEALTH FACILITIES HEALTH INSURANCE HEALTH OUTCOMES HEALTH SERVICES HIGH SCHOOL EDUCATION HOSPITALS HOUSEHOLD CHARACTERISTICS HOUSEHOLD COMPOSITION HOUSEHOLD DYNAMICS HOUSEHOLD LEVEL HOUSEHOLD SIZE HOUSEHOLD SURVEY HOUSEHOLD SURVEYS HOUSEHOLDS INCOME INFORMAL EMPLOYMENT INFORMAL LABOR MARKETS INFORMAL SECTOR JOB SECURITY JOBS LABOR DEMAND LABOR FORCE LABOR FORCE PARTICIPATION LABOR MARKET LABOR MARKET OUTCOMES LABOR MARKET REFORMS LABOR MARKET SEGMENTATION LABOR MOBILITY LABOR SUPPLY LABOR SURVEYS LABOUR LEVELS OF EDUCATION LOCAL GOVERNMENTS MARKET WAGE MEDICAL FACILITIES MEDICINES MIGRATION NUMBER OF ADULTS NUMBER OF CHILDREN NUMBER OF HOUSEHOLDS NUMBER OF PEOPLE NUMBER OF WORKERS NUTRITION OLDER PEOPLE OLDER WORKERS PENSIONS POLICY ANALYSIS POLICY CHANGE POLICY DISCUSSIONS POLICY MAKERS POLICY RESEARCH POLICY RESEARCH WORKING PAPER POOR FAMILIES PRIVATE COMPANY PRIVATE SECTOR PROGRAM BENEFICIARIES PROGRESS PUBLIC HEALTH PUBLIC HEALTH SERVICES PUBLIC POLICY RESPECT RETIREMENT RICHER PEOPLE SAFETY SAFETY NETS SALARIED EMPLOYMENT SECONDARY EDUCATION SECONDARY SCHOOL SECONDARY SCHOOLING SELF EMPLOYED SERVICE DELIVERY SMALLER HOUSEHOLDS SOCIAL BENEFITS SOCIAL POLICY SOCIAL PROGRAMS SOCIAL SECURITY SPOUSE SPOUSES UNEMPLOYED UNEMPLOYMENT UNINTENDED CONSEQUENCES UNSKILLED WORKERS URBAN AREAS URBAN POPULATION URBAN POPULATIONS WAGE EMPLOYMENT WAGE GAINS WAGES WOMAN WORKER WORKERS YOUNGER WORKERS Seguro Popular was introduced in 2002 to provide health insurance to the 50 million Mexicans without Social Security. This paper tests whether the program has had unintended consequences, distorting workers' incentives to operate in the informal sector. The analysis examines the impact of Seguro Popular on disaggregated labor market decisions, taking into account that program coverage depends not only on the individual's employment status, but also that of other household members. The identification strategy relies on the variation in Seguro Popular's rollout across municipalities and time, with the difference-in-difference estimation controlling for household fixed effects. The paper finds that Seguro Popular lowers formality by 0.4-0.7 percentage points, with adjustments largely occurring within a few years of the program's introduction. Rather than encouraging exit from the formal sector, Seguro Popular is associated with a 3.1 percentage point reduction (a 20 percent decline) in the inflow of workers into formality. Income effects are also apparent, with significantly decreased flows out of unemployment and lower labor force participation. The impact is larger for those with less education, in larger households, and with someone else in the household guaranteeing Social Security coverage. However, workers pay for part of these benefits with lower wages in the informal sector. 2012-03-19T18:04:26Z 2012-03-19T18:04:26Z 2011-08-01 http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110831083052 http://hdl.handle.net/10986/3548 English Paper is funded by the Knowledge for Change Program (KCP),Policy Research working paper ; no. WPS 5785 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Publications & Research :: Policy Research Working Paper Latin America & Caribbean Latin America & Caribbean North America America Mexico |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
AGGREGATE PRODUCTIVITY BABIES BUSINESS CYCLE CITIES CLINICS DEPENDANTS DEPENDENT CHILDREN DEVELOPING COUNTRIES DEVELOPMENT POLICY DWELLING ECONOMIC GROWTH ECONOMICS EDUCATED WOMEN EDUCATIONAL ATTAINMENT ELDERLY EMPLOYMENT STATUS EQUALITY EXTENDED FAMILIES FAMILIES FEMALE FEMALE HEADED HOUSEHOLDS FORMAL EDUCATION FORMAL LABOR MARKET FORMAL SECTOR WORKERS GENDER HEALTH CARE HEALTH CARE ACCESS HEALTH EFFECTS HEALTH FACILITIES HEALTH INSURANCE HEALTH OUTCOMES HEALTH SERVICES HIGH SCHOOL EDUCATION HOSPITALS HOUSEHOLD CHARACTERISTICS HOUSEHOLD COMPOSITION HOUSEHOLD DYNAMICS HOUSEHOLD LEVEL HOUSEHOLD SIZE HOUSEHOLD SURVEY HOUSEHOLD SURVEYS HOUSEHOLDS INCOME INFORMAL EMPLOYMENT INFORMAL LABOR MARKETS INFORMAL SECTOR JOB SECURITY JOBS LABOR DEMAND LABOR FORCE LABOR FORCE PARTICIPATION LABOR MARKET LABOR MARKET OUTCOMES LABOR MARKET REFORMS LABOR MARKET SEGMENTATION LABOR MOBILITY LABOR SUPPLY LABOR SURVEYS LABOUR LEVELS OF EDUCATION LOCAL GOVERNMENTS MARKET WAGE MEDICAL FACILITIES MEDICINES MIGRATION NUMBER OF ADULTS NUMBER OF CHILDREN NUMBER OF HOUSEHOLDS NUMBER OF PEOPLE NUMBER OF WORKERS NUTRITION OLDER PEOPLE OLDER WORKERS PENSIONS POLICY ANALYSIS POLICY CHANGE POLICY DISCUSSIONS POLICY MAKERS POLICY RESEARCH POLICY RESEARCH WORKING PAPER POOR FAMILIES PRIVATE COMPANY PRIVATE SECTOR PROGRAM BENEFICIARIES PROGRESS PUBLIC HEALTH PUBLIC HEALTH SERVICES PUBLIC POLICY RESPECT RETIREMENT RICHER PEOPLE SAFETY SAFETY NETS SALARIED EMPLOYMENT SECONDARY EDUCATION SECONDARY SCHOOL SECONDARY SCHOOLING SELF EMPLOYED SERVICE DELIVERY SMALLER HOUSEHOLDS SOCIAL BENEFITS SOCIAL POLICY SOCIAL PROGRAMS SOCIAL SECURITY SPOUSE SPOUSES UNEMPLOYED UNEMPLOYMENT UNINTENDED CONSEQUENCES UNSKILLED WORKERS URBAN AREAS URBAN POPULATION URBAN POPULATIONS WAGE EMPLOYMENT WAGE GAINS WAGES WOMAN WORKER WORKERS YOUNGER WORKERS |
| spellingShingle |
AGGREGATE PRODUCTIVITY BABIES BUSINESS CYCLE CITIES CLINICS DEPENDANTS DEPENDENT CHILDREN DEVELOPING COUNTRIES DEVELOPMENT POLICY DWELLING ECONOMIC GROWTH ECONOMICS EDUCATED WOMEN EDUCATIONAL ATTAINMENT ELDERLY EMPLOYMENT STATUS EQUALITY EXTENDED FAMILIES FAMILIES FEMALE FEMALE HEADED HOUSEHOLDS FORMAL EDUCATION FORMAL LABOR MARKET FORMAL SECTOR WORKERS GENDER HEALTH CARE HEALTH CARE ACCESS HEALTH EFFECTS HEALTH FACILITIES HEALTH INSURANCE HEALTH OUTCOMES HEALTH SERVICES HIGH SCHOOL EDUCATION HOSPITALS HOUSEHOLD CHARACTERISTICS HOUSEHOLD COMPOSITION HOUSEHOLD DYNAMICS HOUSEHOLD LEVEL HOUSEHOLD SIZE HOUSEHOLD SURVEY HOUSEHOLD SURVEYS HOUSEHOLDS INCOME INFORMAL EMPLOYMENT INFORMAL LABOR MARKETS INFORMAL SECTOR JOB SECURITY JOBS LABOR DEMAND LABOR FORCE LABOR FORCE PARTICIPATION LABOR MARKET LABOR MARKET OUTCOMES LABOR MARKET REFORMS LABOR MARKET SEGMENTATION LABOR MOBILITY LABOR SUPPLY LABOR SURVEYS LABOUR LEVELS OF EDUCATION LOCAL GOVERNMENTS MARKET WAGE MEDICAL FACILITIES MEDICINES MIGRATION NUMBER OF ADULTS NUMBER OF CHILDREN NUMBER OF HOUSEHOLDS NUMBER OF PEOPLE NUMBER OF WORKERS NUTRITION OLDER PEOPLE OLDER WORKERS PENSIONS POLICY ANALYSIS POLICY CHANGE POLICY DISCUSSIONS POLICY MAKERS POLICY RESEARCH POLICY RESEARCH WORKING PAPER POOR FAMILIES PRIVATE COMPANY PRIVATE SECTOR PROGRAM BENEFICIARIES PROGRESS PUBLIC HEALTH PUBLIC HEALTH SERVICES PUBLIC POLICY RESPECT RETIREMENT RICHER PEOPLE SAFETY SAFETY NETS SALARIED EMPLOYMENT SECONDARY EDUCATION SECONDARY SCHOOL SECONDARY SCHOOLING SELF EMPLOYED SERVICE DELIVERY SMALLER HOUSEHOLDS SOCIAL BENEFITS SOCIAL POLICY SOCIAL PROGRAMS SOCIAL SECURITY SPOUSE SPOUSES UNEMPLOYED UNEMPLOYMENT UNINTENDED CONSEQUENCES UNSKILLED WORKERS URBAN AREAS URBAN POPULATION URBAN POPULATIONS WAGE EMPLOYMENT WAGE GAINS WAGES WOMAN WORKER WORKERS YOUNGER WORKERS Aterido, Reyes Hallward-Driemeier, Mary Pages, Carmen Does Expanding Health Insurance beyond Formal-Sector Workers Encourage Informality? Measuring the Impact of Mexico’s Seguro Popular |
| geographic_facet |
Latin America & Caribbean Latin America & Caribbean North America America Mexico |
| relation |
Paper is funded by the Knowledge for Change
Program (KCP),Policy Research working paper ; no. WPS 5785 |
| description |
Seguro Popular was introduced in 2002 to
provide health insurance to the 50 million Mexicans without
Social Security. This paper tests whether the program has
had unintended consequences, distorting workers'
incentives to operate in the informal sector. The analysis
examines the impact of Seguro Popular on disaggregated labor
market decisions, taking into account that program coverage
depends not only on the individual's employment status,
but also that of other household members. The identification
strategy relies on the variation in Seguro Popular's
rollout across municipalities and time, with the
difference-in-difference estimation controlling for
household fixed effects. The paper finds that Seguro Popular
lowers formality by 0.4-0.7 percentage points, with
adjustments largely occurring within a few years of the
program's introduction. Rather than encouraging exit
from the formal sector, Seguro Popular is associated with a
3.1 percentage point reduction (a 20 percent decline) in the
inflow of workers into formality. Income effects are also
apparent, with significantly decreased flows out of
unemployment and lower labor force participation. The impact
is larger for those with less education, in larger
households, and with someone else in the household
guaranteeing Social Security coverage. However, workers pay
for part of these benefits with lower wages in the informal sector. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Aterido, Reyes Hallward-Driemeier, Mary Pages, Carmen |
| author_facet |
Aterido, Reyes Hallward-Driemeier, Mary Pages, Carmen |
| author_sort |
Aterido, Reyes |
| title |
Does Expanding Health Insurance beyond Formal-Sector Workers
Encourage Informality? Measuring the Impact of Mexico’s Seguro Popular |
| title_short |
Does Expanding Health Insurance beyond Formal-Sector Workers
Encourage Informality? Measuring the Impact of Mexico’s Seguro Popular |
| title_full |
Does Expanding Health Insurance beyond Formal-Sector Workers
Encourage Informality? Measuring the Impact of Mexico’s Seguro Popular |
| title_fullStr |
Does Expanding Health Insurance beyond Formal-Sector Workers
Encourage Informality? Measuring the Impact of Mexico’s Seguro Popular |
| title_full_unstemmed |
Does Expanding Health Insurance beyond Formal-Sector Workers
Encourage Informality? Measuring the Impact of Mexico’s Seguro Popular |
| title_sort |
does expanding health insurance beyond formal-sector workers
encourage informality? measuring the impact of mexico’s seguro popular |
| publishDate |
2012 |
| url |
http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110831083052 http://hdl.handle.net/10986/3548 |
| _version_ |
1764387182124990464 |