There is a gap between healthcare service use and the demand for voluntary health insurance. People that have a high income are more likely to purchase voluntary health insurance, while people in worse health and afflicted by chronic illness may have greater difficulty purchasing voluntary health insurance because they face higher premiums or are denied coverage by insurers.

Purpose There are several different factors that can influence self-employment. However, there is little evidence stemming from direct examination of the impact of financial development (FD) on self-employment. This study aims to formulate empirical specification models to examine the effect of FD on self-employment. Design/methodology/approach Panel data analysis of 136 sample countries was performed during the period from 2000 to 2017. This study initially implemented the new financial index developed by the International Monetary Fund (IMF) to examine the impact of FD on self-employment. Panel data analysis including the pooled model, fixed effect and random effect model has been carried out. Findings The empirical results show that the financial institutions index has a negative significant impact on self-employment by a considerable magnitude, whereas the financial markets index does not show any statistical significance. The results also find that the government effectiveness index is negative and statistically significant on self-employment. Originality/value There are several different factors which can influence self-employment. Nevertheless, there is little evidence for the direct examination of the impact of FD on self-employment. This study investigated the impact of FD on self-employment by using the new FD index created by the IMF. The finding may help policymakers to implement FD along with other institutional policies to control self-employment.

No abstract

No abstract

The aim of the paper is to formulate empirical specification models to examine whether financial development stimulates economic growth and encourages formalization. Cross-country data analysis of 140 sample countries during the period from 2000 to 2018 were utilized, together with new indexes of financial development. The income decomposition method and the two-step estimation approach, together with the multiple linear regression with interactions effect, were employed as empirical methods. It was found that financial development can lower informal self-employment through economic growth. Financial development also contributes to economic growth. Therefore, development of financial markets and financial institutions should be an alternative policy to control informal employment.