We investigate how disability insurance (DI) generosity affects DI take-up and labor market participation in a setting where benefits can be cumulated with substantial labor earnings. Using rich administrative data on Italian private-sector workers and a Regression Discontinuity in Time design, we find a large behavioral response to DI generosity, with an elasticity of 1.26 in DI take-up, while employment effects are minor and concentrated among immigrants. Our identification strategy exploits a major social security reform that reduced the expected DI replacement rate and generated a clear income effect. To address unobserved heterogeneity and the unobservability of underlying disability, we focus on individuals affected by acute cardiovascular shocks whose DI eligibility is plausibly exogenous. Overall, our results suggest that when earnings cumulability is extensive, DI is widely perceived as a complement to labor income. This has important implications for the design of labor-inclusive DI schemes.
{"title":"Disability Insurance as a Complement to Labor Income: Evidence From Italian Administrative Data.","authors":"Zantomio Francesca, Belloni Michele, Carrieri Vincenzo, Farina Elena, Simonetti Irene","doi":"10.1002/hec.70072","DOIUrl":"https://doi.org/10.1002/hec.70072","url":null,"abstract":"<p><p>We investigate how disability insurance (DI) generosity affects DI take-up and labor market participation in a setting where benefits can be cumulated with substantial labor earnings. Using rich administrative data on Italian private-sector workers and a Regression Discontinuity in Time design, we find a large behavioral response to DI generosity, with an elasticity of 1.26 in DI take-up, while employment effects are minor and concentrated among immigrants. Our identification strategy exploits a major social security reform that reduced the expected DI replacement rate and generated a clear income effect. To address unobserved heterogeneity and the unobservability of underlying disability, we focus on individuals affected by acute cardiovascular shocks whose DI eligibility is plausibly exogenous. Overall, our results suggest that when earnings cumulability is extensive, DI is widely perceived as a complement to labor income. This has important implications for the design of labor-inclusive DI schemes.</p>","PeriodicalId":12847,"journal":{"name":"Health economics","volume":" ","pages":""},"PeriodicalIF":2.4,"publicationDate":"2025-12-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145752003","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"医学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This paper quantifies physician agency in China's prescription drug market by exploiting the structural shift created by the Zero-Markup Drug Policy. We find that physicians' prescribing decisions are about three times more sensitive to the hospital's profit margin than to the retail price faced by patients. The study provides several key findings. First, government policy exerts a strong influence on drug prices. Second, branded drugs are generally preferred over generics and display lower price elasticity. Third, the policy accounts for more than half of the observed decline in average wholesale prices. Finally, while the policy improves patient welfare, it reduces pharmaceutical firms' sales and profits, and a partial restoration of drug markups could increase overall social welfare.
{"title":"Physician Agency and the Zero-Markup Drug Policy in China: Evidence From a Structural Model.","authors":"Qifan Huang, Zhentong Lu, Castiel Chen Zhuang","doi":"10.1002/hec.70073","DOIUrl":"https://doi.org/10.1002/hec.70073","url":null,"abstract":"<p><p>This paper quantifies physician agency in China's prescription drug market by exploiting the structural shift created by the Zero-Markup Drug Policy. We find that physicians' prescribing decisions are about three times more sensitive to the hospital's profit margin than to the retail price faced by patients. The study provides several key findings. First, government policy exerts a strong influence on drug prices. Second, branded drugs are generally preferred over generics and display lower price elasticity. Third, the policy accounts for more than half of the observed decline in average wholesale prices. Finally, while the policy improves patient welfare, it reduces pharmaceutical firms' sales and profits, and a partial restoration of drug markups could increase overall social welfare.</p>","PeriodicalId":12847,"journal":{"name":"Health economics","volume":" ","pages":""},"PeriodicalIF":2.4,"publicationDate":"2025-12-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145752092","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"医学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
In France, the Couverture Maladie Universelle Complémentaire (CMU-C) scheme is a means-tested, state-financed, complementary health insurance program that fully covers healthcare. Using administrative claims data and a staggered difference-in-differences approach, we estimate the impact of enrollment in the program on healthcare utilization. To address selection into the program, we use health shocks at the family level to exogenize individual enrollment. The findings indicate that access to free healthcare significantly increases healthcare utilization at both intensive and extensive margins. This effect is driven primarily by individuals who are uninsured before enrolling in the CMU-C. Moreover, individuals with severe or chronic illnesses, who already receive additional public coverage for their conditions, experience significant gains from the CMU-C coverage. Finally, these effects persist throughout the coverage period.
{"title":"Do Prices Matter for Healthcare Accessibility? Evidence From a Means-Tested Complementary Health Insurance in France.","authors":"Benoît Carré, Florence Jusot, Jérôme Wittwer","doi":"10.1002/hec.70070","DOIUrl":"10.1002/hec.70070","url":null,"abstract":"<p><p>In France, the Couverture Maladie Universelle Complémentaire (CMU-C) scheme is a means-tested, state-financed, complementary health insurance program that fully covers healthcare. Using administrative claims data and a staggered difference-in-differences approach, we estimate the impact of enrollment in the program on healthcare utilization. To address selection into the program, we use health shocks at the family level to exogenize individual enrollment. The findings indicate that access to free healthcare significantly increases healthcare utilization at both intensive and extensive margins. This effect is driven primarily by individuals who are uninsured before enrolling in the CMU-C. Moreover, individuals with severe or chronic illnesses, who already receive additional public coverage for their conditions, experience significant gains from the CMU-C coverage. Finally, these effects persist throughout the coverage period.</p>","PeriodicalId":12847,"journal":{"name":"Health economics","volume":" ","pages":""},"PeriodicalIF":2.4,"publicationDate":"2025-12-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145742195","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"医学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This study estimates the effects on perinatal mental health of the state's minimum wage and earned income tax credit (EITC), controlling for other policies and state-level factors. Using data from the Pregnancy Risk Assessment Monitoring System for 2012-2018 births we find robust evidence that minimum wages and EITC levels reduce depression before pregnancy and suggestive evidence of minimum wages reducing postpartum depression, at least for married respondents. Our estimates suggest that a one dollar increase in the minimum wage ($100 increase in the state EITC) reduces pre-pregnancy depression by roughly 8.5% (1.5%). These findings stand up to standard robustness and falsification tests, including event study analyses, a wide array of alternative specifications, and finding no effect for those unlikely to benefit (e.g., college-educated respondents). A supplementary analysis using data from the Behavioral Risk Factor Surveillance System suggests that state EITC levels may reduce mental distress during pregnancy. We investigate possible mechanisms by providing a descriptive analysis of the income and work behavior of such households, which shows the wide reach of these policies, and investigating a broad set of outcomes from the PRAMS, such as financial stressors, health insurance and birth outcomes.
{"title":"Minimum Wages, the Earned Income Tax Credit, and Mental Health Around Pregnancy.","authors":"Bryce J Stanley, Karen Smith Conway","doi":"10.1002/hec.70071","DOIUrl":"https://doi.org/10.1002/hec.70071","url":null,"abstract":"<p><p>This study estimates the effects on perinatal mental health of the state's minimum wage and earned income tax credit (EITC), controlling for other policies and state-level factors. Using data from the Pregnancy Risk Assessment Monitoring System for 2012-2018 births we find robust evidence that minimum wages and EITC levels reduce depression before pregnancy and suggestive evidence of minimum wages reducing postpartum depression, at least for married respondents. Our estimates suggest that a one dollar increase in the minimum wage ($100 increase in the state EITC) reduces pre-pregnancy depression by roughly 8.5% (1.5%). These findings stand up to standard robustness and falsification tests, including event study analyses, a wide array of alternative specifications, and finding no effect for those unlikely to benefit (e.g., college-educated respondents). A supplementary analysis using data from the Behavioral Risk Factor Surveillance System suggests that state EITC levels may reduce mental distress during pregnancy. We investigate possible mechanisms by providing a descriptive analysis of the income and work behavior of such households, which shows the wide reach of these policies, and investigating a broad set of outcomes from the PRAMS, such as financial stressors, health insurance and birth outcomes.</p>","PeriodicalId":12847,"journal":{"name":"Health economics","volume":" ","pages":""},"PeriodicalIF":2.4,"publicationDate":"2025-12-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145721373","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"医学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Chantal Schouwenaar, Pierre Koning, Yvonne Krabbe-Alkemade, Maarten Lindeboom, France Portrait
The cover image is based on the article Long-Term Care at Advanced Ages: The Effect of Spousal Bereavement on Institutional Care Needs by Chantal Schouwenaar et al., https://doi.org/10.1002/hec.70043.