The Effect of Subsidizing Dental Care Costs on Demand and Intra-Household Allocation of Dental Care

Abstract

The study examines the effect of a dental-care reform for children in Israel on the use of dental care and intra-household allocation of dental treatments. Using seven-year administrative panel data on patients’ dental treatments at a large clinic in Jerusalem that serves one of the target populations of the reform (ultra-Orthodox Jews, a population typically characterized by low income and education), the treatment patterns of reform-eligible children and ineligible household members are analyzed, using a difference-in-differences empirical strategy. The reform is found to have increased access to dental care substantially, particularly in terms of preventive treatments, and therefore enhanced oral health. It also created a substantial spillover effect for households that have eligible children, as evidenced by a change in the treatment mix and the intensity of recourse to treatments by ineligible household members.