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Is There Job Lock? Evidence from the Pre-HIPAA Era

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  • Mark C. Berger

    (Department of Economics, The University of Kentucky)

  • Dan A. Black

    ()
    (Center for Policy Research, Syracuse University)

  • Frank A. Scott

    ()
    (Department of Economics, The University of Kentucky)

Abstract

We estimate discrete time hazard models of employment duration and standard logarithmic wage equations using the 1987 and 1990 panels of the Survey of Income and Program Participation (SIPP) to examine the phenomenon of job lock. We test for job lock using differences-in-differences approaches among those with and without employer-provided health insurance and family members with and without health problems. We find no statistically significant evidence of job lock on employment duration or wages using this approach. We do find some evidence of shorter employment spells for those with employer-provided health insurance and spouse-provided health insurance, and longer employment spells for those with employer-provided health insurance and large families. Others have interpreted these findings as evidence of job lock. However, the wage equation results using these measures are not consistent with job lock. Although anecdotal evidence makes it clear that some workers have been locked into less-than-optimal jobs because of the combination of health problems and employer-provided health insurance, our results do not suggest that this phenomenon is pervasive in the U.S. economy.

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Bibliographic Info

Article provided by Southern Economic Association in its journal Southern Economic Journal.

Volume (Year): 70 (2004)
Issue (Month): 4 (April)
Pages: 953-976

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Handle: RePEc:sej:ancoec:v:70:4:y:2004:p:953-976

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Cited by:
  1. Gumus, Gulcin & Regan, Tracy L., 2009. "Self-Employment and the Role of Health Insurance," IZA Discussion Papers 3952, Institute for the Study of Labor (IZA).
  2. Peter A. Groothuis & James Richard Hill, 2009. "Correcting for Survival Effects in Cross Section Wage Equations Using NBA Data," Working Papers 09-19, Department of Economics, Appalachian State University.
  3. Kuo-Liang Chang & George Langelett & Andrew Waugh, 2011. "Health, Health Insurance, and Decision to Exit from Farming," Journal of Family and Economic Issues, Springer, vol. 32(2), pages 356-372, June.
  4. Fairlie, Robert W. & Kapur, Kanika & Gates, Susan, 2013. "Job Lock: Evidence from a Regression Discontinuity Design," IZA Discussion Papers 7785, Institute for the Study of Labor (IZA).
  5. Henry S. Farber, 2005. "Comments on Madrian’s “The U.S. Health Care System and Labor Markets”," Conference Series ; [Proceedings], Federal Reserve Bank of Boston, vol. 50(Jun), pages 165-172.
  6. Brigitte Madrian, 2006. "The U.S. Health Care System and Labor Markets," NBER Working Papers 11980, National Bureau of Economic Research, Inc.
  7. 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.
  8. Harris, Douglas N. & Adams, Scott J., 2007. "Understanding the level and causes of teacher turnover: A comparison with other professions," Economics of Education Review, Elsevier, vol. 26(3), pages 325-337, June.
  9. Harley Frazis & Mark A. Loewenstein, 2009. "How Responsive are Quits to Benefits?," Working Papers 426, U.S. Bureau of Labor Statistics.
  10. Hamersma, Sarah & Kim, Matthew, 2009. "The effect of parental Medicaid expansions on job mobility," Journal of Health Economics, Elsevier, vol. 28(4), pages 761-770, July.

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