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Gender Differences In The Valuation Of Employer‐Provided Health Insurance

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  • NASSER DANESHVARY
  • TERRENCE M. CLAURETIE

Abstract

We present evidence that accurate estimates of the labor‐earning/employer‐provided health insurance trade‐off must account for two different effects: the heterogeneity of jobs and the endogeneity of health insurance. The size of the trade‐off depends on employees’ contribution to premiums, health‐care needs, and valuation of insurance. We use Medical Expenditure Panel Survey data and instrumental variables/two‐stage least squares. On average, workers accept about 16.5% to 20% lower earnings in return for insurance, and married women value insurance by about 3.5 percentage points more than married men, explaining about 3% of the gender‐earning differentials. Health insurance does not contribute to the unexplained portion of the gender‐pay gap. (JEL J3, J7, I1)

Suggested Citation

  • Nasser Daneshvary & Terrence M. Clauretie, 2007. "Gender Differences In The Valuation Of Employer‐Provided Health Insurance," Economic Inquiry, Western Economic Association International, vol. 45(4), pages 800-816, October.
    • Handle: RePEc:bla:ecinqu:v:45:y:2007:i:4:p:800-816
    DOI: 10.1111/j.1465-7295.2007.0057.x
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    3. Joanna N. Lahey, 2012. "The efficiency of a group‐specific mandated benefit revisited: The effect of infertility mandates," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 31(1), pages 63-92, December.
    4. Cowan, Benjamin & Schwab, Benjamin, 2016. "Employer-sponsored health insurance and the gender wage gap," Journal of Health Economics, Elsevier, vol. 45(C), pages 103-114.
    5. J-L Hu & C-Y Fang, 2010. "Do market share and efficiency matter for each other? An application of the zero-sum gains data envelopment analysis," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 61(4), pages 647-657, April.

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    More about this item

    JEL classification:

    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • J7 - Labor and Demographic Economics - - Labor Discrimination
    • I1 - Health, Education, and Welfare - - Health

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