Technical Report Health insurance coverage and firm performance : Evidence using firm level data from Vietnam

Yamada, Hiroyuki  ,  Vu, Tien Manh

DP-2016-pp.1 - 30 , 2016-07-06 , Osaka School of International Public Policy
In literature, there is limited direct evidence regarding the effect of health insurance coverage on firm performance and worker productivity. In this paper, we study the impacts of health insurance on medium and large-scale domestic private firms’ performance and productivity in Vietnam, using a large firm level census dataset. We deploy propensity-score matching methods, and find statistically positive health insurance effects on both aggregate profit and profit per worker for both complying and non-complying medium and large-scale firms. Given the full sample results, we recommend an improvement in government monitoring as one of the important policy options to induce medium and large-scale firms to contribute to health insurance premiums for their employees.

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