How do basic income for elderly affect health of self-employed?

Abstract

This study explores how basic income (a non-contributory pension program) for the elderly affects the health of retired workers who were self-employed or salaried workers. Differences in health between these groups may arise because of the greater social protection and lower income volatility that salaried workers enjoy. The study uses a cluster-randomized controlled trial that provides supplemental incomes to adults aged 70 or older in two towns of Yucatan, Mexico. It compares the effects of supplemental income over two waves for Valladolid (where eligible individuals received a monthly income supplement) and Motul (a demographically matched control town). The results indicate that self-employed workers experience a decrease in anemia and improvements in peak expiratory flow, word recall, satisfaction with health, better health care use, and well-being. In contrast, salaried workers' health outcomes show no significant effect from the program. The program improves food availability for both self-employed and salaried workers, but its impact on food availability is stronger for self-employed workers. The program did cause a crowding out of family transfers for self-employed and salaried workers.