The socioeconomic distribution of choice quality: evidence from health insurance in the Netherlands

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 2640-205X

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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/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:	12 Dec 2024 03:59
URI:	http://eprints.lse.ac.uk/id/eprint/121132

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