Template-type: ReDIF-Paper 1.0 Author-Name: Le, Nga Author-Email: nga.le@maastrichtuniversity.nl Author-Workplace-Name: UNU-MERIT Author-Name: Groot, Wim Author-Email: wn.groot@maastrichtuniversity.nl Author-Workplace-Name: UNU-MERIT, TIER and CAPHRI School for Public Health and Primary Care, Maastricht University Author-Name: Tomini, Sonila M. Author-Email: sonila.tomini@maastrichtuniversity.nl Author-Workplace-Name: UNU-MERIT Author-Name: Tomini, Florian Author-Email: f.tomini@qmul.ac.uk Author-Workplace-Name: Centre for Primary Care and Public Health Queen Mary University, London, Title: Health insurance and self-employment transitions in Vietnam Abstract: Health insurance can have important effects on self-employment and self- employment transitions. However, there is a literature gap on the relationship between health insurance and self-employment in low and middle income countries, especially in the context of rapid expansion of health insurance in these countries. This paper examines this relationship in Vietnam with a focus on the comparison between the voluntary scheme for the informal sector (mostly self-employed workers) and the compulsory insurance for the formal sector (mostly wage workers). We employ a Probit model with selection on a panel from the Vietnamese Household Living Standards Surveys 2010-2014 to investigate the association between health insurance and self-employment entry and exit. We show that those with compulsory health insurance in Vietnam, the formal workers, are 10 percentage points less likely to enter self-employment compared to those having voluntary insurance. Regarding self-employment exit, people with compulsory insurance are more likely to exit self-employment compared to those covered by voluntary insurance. However, the effect size is relatively small. Classification-JEL: I13, J22 Keywords: health insurance, self-employment, Vietnam, self-employment entry, self-employment exit Series: UNU-MERIT Working Papers Creation-Date: 20190322 Number: 2019-008 File-URL: https://unu-merit.nl/publications/wppdf/2019/wp2019-008.pdf File-Format: application/pdf File-Size: 275 Kb Handle: RePEc:unm:unumer:2019008