The government’s no-user-fee policy in health care has contributed US$26.6 million (in purchasing power parity terms) worth of net real production to the Jamaican economy while adding 2.15 additional weekly hours to the labour market, according to a recent publication by the International Development Bank (IDB).
The publication, entitled Universal Public Health Insurance Adult Status and Labour Supply in Jamaica, revealed that the policy, which was passed in 2008 by then Prime Minister Bruce Goulding, increased aggregate labour supply by 53.2 million hours each year between 2008 and 2012.
The policy, which underwent much critisism both during and after its implementation, has had a positive effect on the overall health of Jamaicans as there was an 18.2 per cent reduction in the likelihood of people suffering any illness, the study said, whilst a significant reduction equivalent to 0.17 days (34 per cent) was reported for people who were unable to carry out normal activities due to illnesses.
This, the report suggests, has benefited uninsured individuals by helping them to have faster recovery from illnesses, and also to supply more labour which creates more production for the economy.
However, there was no effect on a person being employed or contributing to the National Insurance Scheme (NIS).
“Therefore, the results on the indicators clearly suggest that the policy did not alter labour market dynamics at the extensive margin. Employment rates and the quality of employment in terms of formality (captured by the likelihood of contributing to NIS) remained unchanged,” read the report.
Leave A Comment