Work

The Socioeconomic Distribution of Choice Quality: Evidence from Health Insurance in the Netherlands

Year: 2024

Type: article

Abstract: We study how choice quality relates to socioeconomic factors, using population-wide data on health insurance choices and utilization in the Netherlands. We document a striking choice quality gradient with respect to socioeconomic status, finding that those with higher income, higher education, and training in quantitative fields make meaningfully better choices. Household income for the top 5 percent of decision-makers, in terms of surplus captured, is almost three times higher than for the bottom 5 percent. When jointly including all factors, education degree and field of study are more important predictors of choice quality than income and other financial variables. (JEL D31, G22, G52, I13, L15)

Source: American Economic Review Insights

DOI: 10.1257/aeri.20230314

Authors: Benjamin Handel, Jonathan Kolstad, Thomas Minten, Johannes Spinnewijn

Institutions: University of California, Berkeley, London School of Economics and Political Science

Language: English

Topic: Healthcare Policy and Management

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Reduced inequalities, No poverty

Open Access status: green

Funders: Economic and Social Research Council, H2020 European Research Council