This research studies how social security benefits affect labor market variables through a health reform in the social security system in Ecuador. In 2010, the reform extended health benefits for children under 18 years of age of all dependent and self-employed workers affiliated with social security. The identification strategy analyzes the effect of the reform on labor market variables such as formal employment, employment in formal sector companies, job offer, and wages by comparing workers with children between six and eight years of age with workers with children under five years since before 2010 these were not covered by health insurance. Through a Differences-in-Differences approach, it is estimated that there is no effect of the reform on the employment variables analyzed, resulting in no incentive for workers to modify the job offer.
