Abstract
Durations of households’ deficits reveal the difficulty of gathering the means to get by. They involve coverable means. A two-stage Heckman estimation coupled with endogenous regressions of coverable means and subjective health applied to the Korean Longitudinal Study on Aging, 2006-2020, shows that the deficit is likely when family heads are elderly or women, unemployed, with children, living in apartments, with dependants, with housing expenses, or dependent on transfers from parents. These heads take longer to overcome a deficit, whatever the choice of coverable means. People who use bank loans are employed, healthy, and live in a metropolis. Unexpected health expenses (not covered by insurance) drive people to use a means of coverage, which challenges the permanent income hypothesis and risk management theory. Extending national health insurance to chronic diseases, protecting precarious jobs, subsidizing caregivers, microcredit, encouraging family solidarity, or reconciling work and family are avenues for reform.
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