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Labor Market Effects Of Employer‐Provided Health Insurance

Author

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  • KATERINA SHERSTYUK
  • YOAV WACHSMAN
  • GERARD RUSSO

Abstract

This is an experimental study in economics of mandated benefits. Most individuals who have health insurance in the United States obtain it through their employer. Some states require employers to provide insurance to certain types of workers. We used an experimental laboratory to investigate possible effects of alternative health insurance regulations on the competitive labor market performance. We found that mandating the insurance for all workers creates labor market distortions, whereas mandating the insurance only for full‐time workers leads to a higher coverage than under no mandate, an increased number of part‐time workers, but does not necessarily lower market efficiency. (JEL C92, I18, J2)

Suggested Citation

  • Katerina Sherstyuk & Yoav Wachsman & Gerard Russo, 2007. "Labor Market Effects Of Employer‐Provided Health Insurance," Economic Inquiry, Western Economic Association International, vol. 45(3), pages 538-556, July.
    • Handle: RePEc:bla:ecinqu:v:45:y:2007:i:3:p:538-556
    DOI: 10.1111/j.1465-7295.2006.00016.x
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor

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