Labor Market Responses to Rising Health Insurance Costs PDF Download
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Author: David M. Cutler
Publisher:
ISBN:
Category : Employee fringe benefits
Languages : en
Pages : 56
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Book Description
Increases in the cost of providing health insurance must have some effect on labor markets, either in lower wages, changes in the composition of employment, or both. Despite a presumption that most of this effect will be in the form of lower wages, we document in this paper a significant effect on work hours as well. Using data from the CPS and the SIPP, we show that rising health insurance costs over the 1980s increased the hours worked of those with health insurance by up to 3 percent. We argue that this occurs because health insurance is a fixed cost, and as it becomes more expensive to provide, firms face an incentive to substitute hours per worker for the number of workers employed.
Author: David M. Cutler
Publisher:
ISBN:
Category : Employee fringe benefits
Languages : en
Pages : 56
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Book Description
Increases in the cost of providing health insurance must have some effect on labor markets, either in lower wages, changes in the composition of employment, or both. Despite a presumption that most of this effect will be in the form of lower wages, we document in this paper a significant effect on work hours as well. Using data from the CPS and the SIPP, we show that rising health insurance costs over the 1980s increased the hours worked of those with health insurance by up to 3 percent. We argue that this occurs because health insurance is a fixed cost, and as it becomes more expensive to provide, firms face an incentive to substitute hours per worker for the number of workers employed.
Author:
Publisher:
ISBN:
Category : Academic achievement
Languages : en
Pages : 26
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Book Description
Author: Katherine Baicker
Publisher:
ISBN:
Category : Health insurance
Languages : en
Pages : 28
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Book Description
Since 2000, premiums for employer-provided health insurance have increased by 59 percent with little corresponding increase in the generosity of coverage. The effect of this increase in costs on wages and employment will depend on workers' valuation of the benefit, the elasticities of labor supply and demand, and institutional constraints on employers' ability to lower wages. Measuring these effects is difficult, however, without a source of exogenous variation in the cost of benefits. We use variation in medical malpractice payments driven by the recent "medical malpractice crisis" to identify the causal effect of rising health insurance premiums on wages, employment, and health insurance coverage. We estimate that a 10 percent increase in health insurance premiums reduces the aggregate probability of being employed by 1.6 percent and hours worked by 1 percent, and increases the likelihood that a worker is employed only part-time by 1.9 percent. For workers covered by employer provided health insurance, this increase in premiums results in an offsetting decrease in wages of 2.3 percent. Thus, rising health insurance premiums may both increase the ranks of the unemployed and place an increasing burden on workers through decreased wages for workers with employer health insurance and decreased hours for workers moved from full time jobs with benefits to part time jobs without.
Author: Janet Holtzblatt
Publisher: DIANE Publishing
ISBN: 1437922384
Category : Business & Economics
Languages : en
Pages : 8
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Book Description
In the U.S., health insurance (HI) coverage is linked to employment in ways that can affect both wages and the demand for certain types of workers. That close linkage can also affect people¿s decisions to enter the labor force, to work fewer or more hours, to retire, and even to work in one particular job or another. This economic brief shows that the overall impact on labor markets (LM) is difficult to predict. Although economic theory and experience provide some guidance as to the effect of specific provisions, large-scale changes to the HI system could have more extensive repercussions than have previously been observed and also may involve numerous factors that would interact ¿ affecting LM in potentially offsetting ways.
Author: Avantika Kapoor
Publisher:
ISBN:
Category : Public policy
Languages : en
Pages : 64
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Book Description
The US does not have universal healthcare coverage for all its citizens. Instead, institutions have been cobbled together, with coverage varying from person to person. Some forms of health insurance are part of the compensation for employment, while others can be accessed whether the person is employed or not. Employers and the government provide most people their health insurance. The Affordable Care Act has mandated all employers with at least 50 full time employees to cover the health insurance of at least 95 percent of the employees. This coverage is borne as a cost by the employer. My thesis uses longitudinal data from the March Current Population Survey (CPS) conducted by the Census for the Bureau of Labor Statistics (which includes individual-level responses to many demographic and socioeconomic questions) to estimate the impact of insurance cost by observing two sets of time periods (before the mandate is imposed and after the mandate is imposed) to study what has been the impact on variables such as wages, for people who are the heads of their households and what the variation is based on (such as race, age, level of education, and marital status).
Author: United States. General Accounting Office
Publisher:
ISBN:
Category : Employee fringe benefits
Languages : en
Pages : 64
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Book Description
Author: Mark V. Pauly
Publisher: University of Michigan Press
ISBN: 9780472086443
Category : Business & Economics
Languages : en
Pages : 204
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Book Description
Who really pays for health benefits? An accessible explanation of the economic theory behind this question
Author:
Publisher:
ISBN:
Category : Employer-sponsored health insurance
Languages : en
Pages : 27
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Book Description
The strong link between employment and health insurance in the U.S. means that ever rising health care costs may have serious consequences for labor market outcomes such as job creation, employment flows, earnings, and hours of work. In this paper, we analyze the effect of health care costs on these employment outcomes, using a dataset compiled to address these issues at the MSA level. Some caution in interpretation is necessary here due to the imprecision of the estimates but overall we argue that the patterns we find suggest a negative effect on employment, with the impact occurring mostly through reductions in new hires. There is also some evidence that workers are not leaving jobs with higher health insurance premiums which may support the job-lock hypothesis. Last, we find significant and negative effects of higher costs on hours of work, illustrating that the link between health insurance and employment can affect workers along many dimensions.
Author:
Publisher: DIANE Publishing
ISBN: 9781568061405
Category :
Languages : en
Pages : 76
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Book Description
Examines the effects of rising health care costs on the economy. In particular, it examines how the costs affect workers, businesses and governments. Chapters: special characteristics of health care markets; what has caused the rapid increase in health expenditures; the economic effects of rising costs for employer-provided insurance and how the rising costs for government health programs affect the economy. 21 charts and tables.
Author: Christine Eibner
Publisher: Rand Corporation
ISBN: 0833045024
Category : Medical
Languages : en
Pages : 81
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Book Description
More than 60 percent of nonelderly Americans receive health-insurance (HI) coverage through employers. However, rising health-care costs may threaten the long-term viability of the employer-based insurance system. This report explores trends in the economic burden associated with HI provision for small and large businesses, as well as the quality of plans that small and large firms offer.
