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Health insurance and job mobility: Theory and evidence

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  • Alan C. Monheit
  • Philip F. Cooper
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    Abstract

    It is widely hypothesized that health insurance deters job mobility because of imperfections in the labor and health insurance markets. This paper describes the nature of the welfare loss attributable to such "job-lock" and reviews several studies that empirically test the job-lock hypothesis. The authors find that estimates of the magnitude and importance of job-lock vary. Studies that support the job-lock hypothesis typically report a 20% to 40% reduction in mobility rates, depending on worker marital status and gender. Their own estimates suggest that although job-lock is present in the labor market, the proportion of workers affected and the magnitude of the welfare loss are less than generally supposed. (Abstract courtesy JSTOR.)

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    Bibliographic Info

    Article provided by ILR Review, Cornell University, ILR School in its journal ILR Review.

    Volume (Year): 48 (1994)
    Issue (Month): 1 (October)
    Pages: 68-85

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    Handle: RePEc:ilr:articl:v:48:y:1994:i:1:p:68-85

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    Cited by:
    1. Thomas C. Buchmueller & Alan C. Monheit, 2009. "Employer-Sponsored Health Insurance and the Promise of Health Insurance Reform," NBER Working Papers 14839, National Bureau of Economic Research, Inc.
    2. Jaewhan Kim & Peter Philips, 2010. "Health Insurance and Worker Retention in the Construction Industry," Journal of Labor Research, Springer, vol. 31(1), pages 20-38, March.
    3. David M. Blau & Donna B. Gilleskie, 1997. "Retiree Health Insurance and the Labor Force Behavior of Older Men in the 1990s," NBER Working Papers 5948, National Bureau of Economic Research, Inc.
    4. Donna B. Gilleskie & Byron F. Lutz, 1999. "The Impact of Employer-Provided Health Insurance on Dynamic Employment Transitions," NBER Working Papers 7307, National Bureau of Economic Research, Inc.
    5. Gruber, Jonathan & Madrian, Brigitte C., 1997. "Employment separation and health insurance coverage," Journal of Public Economics, Elsevier, vol. 66(3), pages 349-382, December.
    6. Joe Timmerman, 2005. "Determinants of Access to Job-related Health Insurance," Eastern Economic Journal, Eastern Economic Association, vol. 31(4), pages 671-680, Fall.
    7. Kevin T. Stroupe & Eleanor D. Kinney & Thomas J. Kniesner, 2000. "Chronic Illness and Health Insurance-Related Job Lock," Center for Policy Research Working Papers 19, Center for Policy Research, Maxwell School, Syracuse University.
    8. Jonathan Gruber & Brigitte C. Madrian, 2002. "Health Insurance, Labor Supply, and Job Mobility: A Critical Review of the Literature," JCPR Working Papers 255, Northwestern University/University of Chicago Joint Center for Poverty Research.
    9. Alan C. Monheit & Thomas M. Selden, 2000. "Cross-subsidization in the market for employment-related health insurance," Health Economics, John Wiley & Sons, Ltd., vol. 9(8), pages 699-714.
    10. Wolfgang Lechthaler, 2006. "The Interaction of Firing Costs and Firm Training," University of St. Gallen Department of Economics working paper series 2006 2006-01, Department of Economics, University of St. Gallen.
    11. Martha Harrison Stinson, 2002. "Estimating the Relationship between Employer-Provided Health Insurance, Worker Mobility, and Wages," 10th International Conference on Panel Data, Berlin, July 5-6, 2002 B1-2, International Conferences on Panel Data.
    12. Jayanta Bhattacharya & William B. Vogt, 2006. "Employment and Adverse Selection in Health Insurance," NBER Working Papers 12430, National Bureau of Economic Research, Inc.
    13. Dan A. Black, 1996. "Family Health Benefits and Worker Turnover," Labor and Demography 9604001, EconWPA.
    14. Bradley, Cathy J. & Bednarek, Heather L. & Neumark, David, 2002. "Breast cancer survival, work, and earnings," Journal of Health Economics, Elsevier, vol. 21(5), pages 757-779, September.
    15. Anna Huysse-Gaytandjieva & Wim Groot & Milena Pavlova, 2013. "A New Perspective on Job Lock," Social Indicators Research, Springer, vol. 112(3), pages 587-610, July.
    16. Jonathan Gruber & Brigitte C. Madrian, 1995. "Non-Employment and Health Insurance Coverage," NBER Working Papers 5228, National Bureau of Economic Research, Inc.

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