Effects of disability benefits on health status and demand of healthcare services

Luis Quijano-Ruiz, Ecuadorian Development Research Lab
Marco Antonio Haro , Pennsylvania State University
Omar Galarraga, Brown University

Compared to the nondisabled, people with disabilities are more likely to be socially and economically disadvantaged. The goal of this study is to explore the effects of disability benefits on health status and demand for healthcare services in Ecuador. We use instrumental variables to estimate the causal effect of having a disability ID––an ID card issued by the government that provides its holder the official status of disabled, discounted prices on public services, tax benefits, and the eligibility to apply for cash transfers. The instruments are the visits made during the Misión Manuela Espejo program––a program launched in 2009 whose aim was to identify and register the number of lower-income people with disabilities. Findings show that disability ID holders are less likely to be sick, more likely to receive preventive care, and more likely to perceive themselves as healthy. We also estimate the effects on labor supply and, similar to previous research, find that disability ID holders are more likely to be non-employed.

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 Presented in Session P1. Postercafe