How do Basic Income for Elderly Affect Health of Self-Employed?

Short Summary:
This study explores how basic income for elderly (non-contributory pension program) affects the health of self-employed and salaried workers differently, which is particularly interesting given the greater social protection and lower income volatility of the latter. The study uses a cluster-randomized controlled trial that provides supplemental incomes to adults aged 70 or older in two towns in Yucatan, Mexico, and compares the effects of supplemental income over two waves for Valladolid (where eligible individuals received a monthly income supplement throughout the analysis period) and Motul (a demographically matched control town). The results indicate that self-employed workers experience a decrease in anemia, an improvement in peak expiratory flow, and better health care use and well-being. In contrast, salaried workers’ health outcomes show no significant effect from the program. The program improves food availability for both self-employed and salaried workers, but its impact on food availability is stronger for self-employed workers.

Auteurs publication: Emma Aguila and Raquel fonseca