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Health insurance and self-employment transitions in Vietnam

Leopold, N; Groot, W; Tomini, SM; Tomini, F; (2020) Health insurance and self-employment transitions in Vietnam. Journal of Small Business Management 10.1080/00472778.2020.1786335. (In press). Green open access

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Abstract

Health insurance can have important effects on self-employment and self-employment transitions. However, there is a literature gap on the relationship between health insurance and self-employment in low- and middle-income countries, especially in the context of the rapid expansion of health insurance in these countries. This article examines this relationship in Vietnam with a focus on a comparison between the voluntary scheme for the informal sector (mostly self-employed workers) and compulsory insurance for the formal sector (mostly wage workers). We employ a Probit model with selection on a panel from the Vietnamese Household Living Standards Surveys 2010–2014 to investigate the association between health insurance and self-employment entry and exit. We show that those with compulsory health insurance in Vietnam, the formal workers, are 10 percentage points less likely to enter self-employment than those having voluntary insurance. Regarding self-employment exit, people with compulsory insurance are more likely to exit self-employment compared with those covered by voluntary insurance. However, the effect size is relatively small.

Type: Article
Title: Health insurance and self-employment transitions in Vietnam
Open access status: An open access version is available from UCL Discovery
DOI: 10.1080/00472778.2020.1786335
Publisher version: https://doi.org/10.1080/00472778.2020.1786335
Language: English
Additional information: © 2020 The Author(s). Published with license by Taylor & Francis Group, LLC. This is an Open Access article distributed under the terms of the Creative Commons Attribution-NonCommercial-NoDerivatives License (http://creativecommons.org/licenses/by-nc-nd/4.0/), which permits non-commercial re-use, distribution, and reproduction in any medium, provided the original work is properly cited, and is not altered, transformed, or built upon in any way.
Keywords: Health insurance, self-employment entry, self-employment exit
UCL classification: UCL
UCL > Provost and Vice Provost Offices > School of Life and Medical Sciences
UCL > Provost and Vice Provost Offices > School of Life and Medical Sciences > Faculty of Population Health Sciences
UCL > Provost and Vice Provost Offices > School of Life and Medical Sciences > Faculty of Population Health Sciences > Institute of Epidemiology and Health
UCL > Provost and Vice Provost Offices > School of Life and Medical Sciences > Faculty of Population Health Sciences > Institute of Epidemiology and Health > Applied Health Research
URI: https://discovery.ucl.ac.uk/id/eprint/10136550
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