Handel, Benjamin R., Kolstad, Jonathan T., Minten, Thomas and Spinnewijn, Johannes ORCID: 0000-0002-7963-5847 (2024) The socioeconomic distribution of choice quality: evidence from health insurance in the Netherlands. American Economic Review: Insights, 6 (3). 395 – 412. ISSN 2640-2068
Text (The Socio-Economic Distribution of Choice Quality Evidence from Health Insurance in the Netherlands)
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Abstract
We study how choice quality relates to socio-economic factors using population-wide data on health insurance choices and utilization in the Netherlands. We document a striking choice quality gradient with respect to socio-economic status, finding that those with higher income, higher education, and training in quantitative fields make meaningfully better choices. Household income for the top 5% of decision makers, in terms of surplus captured, is almost three times higher than for those in the bottom 5%. When jointly including all factors, education degree and field of study are more important predictors of choice quality than income and other financial variables.
Item Type: | Article |
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Official URL: | https://www.aeaweb.org/articles?id=10.1257/aeri.20... |
Additional Information: | © 2024 American Economic Review |
Divisions: | LSE Economics |
Subjects: | H Social Sciences > HB Economic Theory H Social Sciences |
JEL classification: | D - Microeconomics > D3 - Distribution > D31 - Personal Income, Wealth, and Their Distributions G - Financial Economics > G2 - Financial Institutions and Services > G22 - Insurance; Insurance Companies G - Financial Economics > G0 - General > G00 - General I - Health, Education, and Welfare > I1 - Health > I10 - General L - Industrial Organization > L1 - Market Structure, Firm Strategy, and Market Performance > L15 - Information and Product Quality; Standardization and Compatibility |
Date Deposited: | 02 Jan 2024 17:57 |
Last Modified: | 17 Oct 2024 18:09 |
URI: | http://eprints.lse.ac.uk/id/eprint/121132 |
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