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  5. The Socio-Economic Distribution of Choice Quality: Evidence from Health Insurance in the Netherlands

The Socio-Economic Distribution of Choice Quality: Evidence from Health Insurance in the Netherlands

  • Benjamin Handel
  • Jonathan Kolstad
  • Thomas Minten
  • Johannes Spinnewijn
American Economic Review: Insights (Forthcoming)

Abstract

We study how choice quality relates to socio-economic factors using population-wide data on health insurance choices and utilization in the Netherlands. We document a striking choice quality gradient with respect to socio-economic status, finding that those with higher income, higher education, and training in quantitative fields make meaningfully better choices. Household income for the top 5% of decision makers, in terms of surplus captured, is almost three times higher than for those in the bottom 5%. When jointly including all factors, education degree and eld of study are more important predictors of choice quality than income and other financial variables.

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