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Can Households Cope with Health Shocks in Vietnam?
Author(s) -
Mitra Sophie,
Palmer Michael,
Mont Daniel,
Groce Nora
Publication year - 2016
Publication title -
health economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.55
H-Index - 109
eISSN - 1099-1050
pISSN - 1057-9230
DOI - 10.1002/hec.3196
Subject(s) - vietnamese , consumption (sociology) , vulnerability (computing) , health spending , asset (computer security) , demographic economics , economics , health care , business , socioeconomics , development economics , economic growth , environmental health , medicine , health insurance , sociology , social science , philosophy , linguistics , computer security , computer science
This paper investigates the economic impact of health shocks on working‐age adults in Vietnam during 2004–2008, using a fixed effects specification. Health shocks cover disability and morbidity and are measured by ‘days unable to carry out regular activity’, ‘days in bed due to illness/injury’, and ‘hospitalization’. Overall, Vietnamese households are able to smooth total non‐health expenditures in the short run in the face of a significant rise in out‐of‐pocket health expenditures. However, this is accomplished through vulnerability‐enhancing mechanisms, especially in rural areas, including increased loans and asset sales and decreased education expenditures. Female‐headed and rural households are found to be the least able to protect consumption. Results highlight the need to extend and deepen social protection and universal health coverage. © 2015 The Authors. Health Economics published by John Wiley & Sons Ltd.