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Catastrophic Health Expenditures and Household labor Supply

신자은|임현도
한국보건경제정책학회 (The Korean Association of Health Economics and Policy)|2021.03|보건경제와 정책연구 (The Korean Journal of Health Economics and Policy)|제27권 제1호|pp. 67-95

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키워드

한국복지패널Korea Welfare Panel Survey재난적 의료비Catastrophic health expenditureshousehold labor supplypanel fixed-effects model가구의 노동공급패널 선형 고정효과 모형
주제분류사회과학일반

초록

This study examines the effects of catastrophic health expenditure (CHE) on labor supply of household members. Theoretical predictions on the relationship between ill-health and labor supply at the household level are ambiguous since increased informal care needs and health care expenditure for sick household members create counteractive incentives for labor supply of caregiving members of working age. Using data from Korea Welfare Panel Survey of 2009-2018, panel fixed-effects linear probability model and multinomial logit models with year fixed effects are conducted for the sample individuals of aged 20-64. Findings show a statistically significant deterrence effect of CHE on employment. Little evidence is found for employment transition from full-time to part-time work. Females and household members of aged 30-39 are particularly susceptible to these effects. Home care service benefit from the National Health Insurance program may help household members avoid loss of employment when households face a risk of impoverishment from excessive medical bills and the burden of informal care provision of severely ill members.

Abstract

This study examines the effects of catastrophic health expenditure (CHE) on labor supply of household members. Theoretical predictions on the relationship between ill-health and labor supply at the household level are ambiguous since increased informal care needs and health care expenditure for sick household members create counteractive incentives for labor supply of caregiving members of working age. Using data from Korea Welfare Panel Survey of 2009-2018, panel fixed-effects linear probability model and multinomial logit models with year fixed effects are conducted for the sample individuals of aged 20-64. Findings show a statistically significant deterrence effect of CHE on employment. Little evidence is found for employment transition from full-time to part-time work. Females and household members of aged 30-39 are particularly susceptible to these effects. Home care service benefit from the National Health Insurance program may help household members avoid loss of employment when households face a risk of impoverishment from excessive medical bills and the burden of informal care provision of severely ill members.

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