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The labor market effects of national health insurance: evidence from Taiwan

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  • Kamhon Kan

    ()

  • Yen-Ling Lin

    ()

Abstract

This paper investigates the impacts of national health insurance on the labor market, by considering the case of Taiwan, which implemented national health insurance in March 1995. Taiwan’s national health insurance is financed by premiums, which are proportional to an employee’s salary. These premiums may introduce distortions to the labor market. Based on repeated cross-sections of individual data we find that, on average, private sector employees’ work hours declined relative to their public sector counterparts, while their relative wage rates were almost unchanged with the introduction of national health insurance. The results suggest that neither private sector employers nor their employees were able to shift their premium burden to each other.

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File URL: http://hdl.handle.net/10.1007/s00148-007-0135-x
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Bibliographic Info

Article provided by Springer in its journal Journal of Population Economics.

Volume (Year): 22 (2009)
Issue (Month): 2 (April)
Pages: 311-350

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Handle: RePEc:spr:jopoec:v:22:y:2009:i:2:p:311-350

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Related research

Keywords: National health insurance; Labor supply; Difference-in-difference; J22; J31; I38;

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  17. Patricia M. Anderson & Bruce D. Meyer, 1995. "The Incidence of a Firm-Varying Payroll Tax: The Case of Unemployment Insurance," NBER Working Papers 5201, National Bureau of Economic Research, Inc.
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