The socio-economic distribution of choice quality: evidence from health insurance in the Netherlands

Handel, Benjamin R., Kolstad, Jonathan T., Minten, Thomas and Spinnewijn, Johannes (2023) The socio-economic distribution of choice quality: evidence from health insurance in the Netherlands. American Economic Review: Insights. ISSN 2640-2068 (In Press)

Text (The Socio-Economic Distribution of Choice Quality Evidence from Health Insurance in the Netherlands) - Accepted Version Pending embargo until 1 January 2100. Download (847kB) | Request a copy

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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
Official URL:	https://www.aeaweb.org/journals/aeri
Additional Information:	© 2024 American Economic Review
Divisions:	Economics
Subjects:	H Social Sciences > HB Economic Theory H Social Sciences
Date Deposited:	02 Jan 2024 17:57
Last Modified:	08 Apr 2024 09:24
URI:	http://eprints.lse.ac.uk/id/eprint/121132

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