Measuring the vital signs effects of concentration in the supplementary health care market on the average wages of professionals in the sector
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Abstract
The empirical literature on the economic effects of horizontal and vertical concentrations in the labor market is still scarce in Brazil. In line with international studies on the subject, this paper seeks to estimate the effect of concentration in the market of Health Maintenance Organizations (HMOs) on the wage of workers in the final activities of the Supplementary Health sector, a segment characterized by a movement toward concentration and verticalization that has become more pronounced in the last decade. To
this end, we estimated the concentration in the HMO market through the variation of the HHI index based on data from the National Agency of Supplementary Health (ANS) on the number of beneficiaries of health care plans in each Brazilian Registry of Corporate Taxpayers (CNPJ) root. The information about salaries and characteristics of individuals, in turn, comes from the Annual Social Information Report (RAIS). The sample of municipalities is composed of 3,586 cities. Through a difference-in-differences approach with multiple time periods, we estimated that concentrations negatively impact wages by 5.53%
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