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Why Do Some Join and Others Don’t? A Behavioral Exploration of Voluntary Social Insurance in Developing Countries

Year: 2025

Type: article

Abstract: Voluntary social insurance (VSI) is critical to extending social protection coverage to informal sector workers in developing countries like Vietnam, yet participation rates remain low. This study investigates the behavioral, social, and structural determinants influencing VSI participation, integrating the theory of planned behavior (TPB) and rational choice theory (RCT) into a comprehensive framework. Data were collected through a structured survey of 448 informal workers and analyzed using structural equation modeling (SEM). Results demonstrate that positive attitudes, supportive subjective norms, respected community figures, and community cohesion drive VSI participation, whereas financial incentives and flexible payment options alone do not. The study highlights the dominant role of internal motivations and social trust over purely economic considerations. Practical implications emphasize the need for communication strategies fostering positive perceptions, leveraging community leadership, and reinforcing institutional credibility. These findings provide valuable insights for policymakers aiming to design more inclusive, resilient social protection systems tailored to transitional economies like Vietnam.

Source: SAGE Open

DOI: 10.1177/21582440251383689

Authors: Son-Tung Le, Thanh Nam Nguyen, Cong Xuong Dang

Institution: Vietnam Maritime University

Language: English

Topic: Financial Literacy, Pension, Retirement Analysis

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

SDGs: Decent work and economic growth, No poverty, Peace, justice, and strong institutions, Reduced inequalities

Open Access status: gold

Estimated APC paid: $1,600