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Employment‐contingent health insurance, illness, and labor supply of women: evidence from married women with breast cancer

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  • Cathy J. Bradley
  • David Neumark
  • Zhehui Luo
  • Heather L. Bednarek

Abstract

We examine the effects of employment‐contingent health insurance (ECHI) on married women's labor supply following a health shock. First, we develop a theoretical framework that examines the effects of ECHI on the labor supply response to a health shock, which suggests that women with ECHI are less likely to reduce their labor supply in response to a health shock, relative to women with health insurance through their spouse's employer. Second, we empirically examine this relationship based on labor supply responses to breast cancer. We find that health shocks decrease labor supply to a greater extent among women insured by their spouse's policy than among women with health insurance through their own employer, suggesting that ECHI creates incentives to remain working when faced with a serious illness. Copyright © 2006 John Wiley & Sons, Ltd.

Suggested Citation

  • Cathy J. Bradley & David Neumark & Zhehui Luo & Heather L. Bednarek, 2007. "Employment‐contingent health insurance, illness, and labor supply of women: evidence from married women with breast cancer," Health Economics, John Wiley & Sons, Ltd., vol. 16(7), pages 719-737, July.
    • Handle: RePEc:wly:hlthec:v:16:y:2007:i:7:p:719-737
    DOI: 10.1002/hec.1191
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    References listed on IDEAS

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    5. Bradley, Cathy J. & Neumark, David & Bednarek, Heather L. & Schenk, Maryjean, 2005. "Short-term effects of breast cancer on labor market attachment: results from a longitudinal study," Journal of Health Economics, Elsevier, vol. 24(1), pages 137-160, January.
    6. Rogowski, Jeannette & Karoly, Lynn, 2000. "Health insurance and retirement behavior: evidence from the health and retirement survey," Journal of Health Economics, Elsevier, vol. 19(4), pages 529-539, July.
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    Cited by:

    1. Schurer, Stefanie, 2017. "Bouncing back from health shocks: Locus of control and labor supply," Journal of Economic Behavior & Organization, Elsevier, vol. 133(C), pages 1-20.
    2. Eskil Heinesen & Christophe Kolodziejczyk & Jacob Ladenburg & Ingelise Andersen & Karsten Thielen, 2017. "Return to work after cancer and pre-cancer job dissatisfaction," Applied Economics, Taylor & Francis Journals, vol. 49(49), pages 4982-4998, October.
    3. Thomas Barnay & Mohamed Ali Ben Halima & Emmanuel Duguet & Christine Leclainche & Camille Regaert, 2016. "The Effects Of Breast Cancer On Individual Labour Market Outcomes: An Evaluation From An Administrative Panel," Working Papers halshs-01374467, HAL.
    4. David Candon, 2019. "The joint effect of health shocks and eligibility for social security on labor supply," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 20(7), pages 969-988, September.
    5. Jeon, Sung-Hee & Pohl, R. Vincent, 2019. "Medical innovation, education, and labor market outcomes of cancer patients," Journal of Health Economics, Elsevier, vol. 68(C).
    6. Aouad, Marion, 2021. "An Examination of the Intracorrelation of Family Health Insurance," IZA Discussion Papers 14541, Institute of Labor Economics (IZA).
    7. Heinesen, Eskil & Imai, Susumu & Maruyama, Shiko, 2018. "Employment, job skills and occupational mobility of cancer survivors," Journal of Health Economics, Elsevier, vol. 58(C), pages 151-175.
    8. Thomas Barnay & Emmanuel Duguet & Christine Le Clainche, 2019. "The Effects of Breast Cancer on Individual Labour Market Outcomes: An Evaluation from an Administrative Panel in France," Annals of Economics and Statistics, GENES, issue 136, pages 103-126.
    9. Fairlie, Robert W. & Kapur, Kanika & Gates, Susan, 2011. "Is employer-based health insurance a barrier to entrepreneurship?," Journal of Health Economics, Elsevier, vol. 30(1), pages 146-162, January.
    10. Atsuko Tanaka, 2021. "The effects of sudden health reductions on labor market outcomes: Evidence from incidence of stroke," Health Economics, John Wiley & Sons, Ltd., vol. 30(6), pages 1480-1497, June.
    11. Aouad, Marion, 2023. "The intracorrelation of family health insurance and job lock," Journal of Health Economics, Elsevier, vol. 90(C).
    12. Jeon, Sung-Hee & Pohl, R. Vincent, 2017. "Health and work in the family: Evidence from spouses’ cancer diagnoses," Journal of Health Economics, Elsevier, vol. 52(C), pages 1-18.
    13. Scott Barkowski, 2020. "Does government health insurance reduce job lock and job push?," Southern Economic Journal, John Wiley & Sons, vol. 87(1), pages 122-169, July.
    14. Kolodziejczyk, Christophe & Heinesen, Eskil, 2016. "Labour market participation after breast cancer for employees from the private and public sectors: Educational and sector gradients in the effect of cancer," Economics & Human Biology, Elsevier, vol. 21(C), pages 33-55.
    15. Schurer, Stefanie, 2014. "Bouncing Back from Health Shocks: Locus of Control, Labor Supply, and Mortality," IZA Discussion Papers 8203, Institute of Labor Economics (IZA).
    16. Cathy J. Bradley & Lindsay M. Sabik, 2019. "Medicaid expansions and labor supply among low-income childless adults: evidence from 2000 to 2013," International Journal of Health Economics and Management, Springer, vol. 19(3), pages 235-272, December.
    17. repec:mrr:papers:wp341 is not listed on IDEAS
    18. Nga Le Thi Quynh & Groot, Wim & Tomini, Sonila M. & Tomini, Florian, 2017. "Effects of health insurance on labour supply: A systematic review," MERIT Working Papers 2017-017, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).

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