Income shock and women's health spending: evidence from a large longitudinal survey and an administrative dataset in India

23/10/2024

Usher Building, The University of Edinburgh, 5-7 Little France Road Edinburgh BioQuarter - Gate 3, EDINBURGH EH16 4UX

A free event with Professor Chatterjee who will examine how women’s income impacts healthcare demand, challenging assumptions with evidence from India.

Professor Chatterjee explores the little-studied role of gender-based tastes and preferences in the relationship between income and healthcare demand.

Drawing on substantial evidence that the gender identity of the income recipient can significantly influence household resource allocation, Professor Chatterjee posits that an increase in women’s income may lead to unexpected changes in healthcare demand.

Using data from a high-frequency, nationally representative household survey in India, he examines the impact of variations in women’s take-home salaries, resulting from changes in mandated contributions to the employees’ provident fund, on healthcare spending. His findings indicate that an increase in women’s take-home pay correlates with a decrease in overall healthcare expenses, including consultations and medications. This trend remains even after accounting for health status and focusing on hospital visits for treatment.

Supplementing this analysis with administrative data from a leading chain of eye hospitals in India, Professor Chatterjee’s research suggests that women’s healthcare preferences may be influenced by social and household norms. These findings challenge the assumption that higher income always leads to increased healthcare spending among women, especially in developing countries.

This is an in-person and online event.