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Limited Insurance Portability and Job Mobility: The Effects of Public Policy on Job-Lock

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Author Info

  • Gruber, J.
  • Madrian, B.C.

Abstract

The link between health insurance and the workplace in the U.S. has led to concern over the possibility of insurance-induced reductions in job mobility or 'job-lock". Designing health insurance reforms which retain employer-based insurance coverage but mitigate the extent of job-lock requires an understanding of the policy dimensions to which job-lock is most receptive. We study a policy of limited insurance portability which has been adopted by a number of states and the federal government over the last 20 years. These "continuation of coverage' mandates grant individuals the right to continue purchasing health insurance through their former employers for some period of time after leaving their jobs. We find that the passage of these mandates caused a significant increase in the job mobility of prime age male workers. This suggests that a sizeable share of job-lock arises from short run concerns over portability rather than from long run problems.

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Bibliographic Info

Paper provided by Massachusetts Institute of Technology (MIT), Department of Economics in its series Working papers with number 94-03.

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Length: 29 pages
Date of creation: 1994
Date of revision:
Handle: RePEc:mit:worpap:94-03

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Postal: MASSACHUSETTS INSTITUTE OF TECHNOLOGY (MIT), DEPARTMENT OF ECONOMICS, 50 MEMORIAL DRIVE CAMBRIDGE MASSACHUSETTS 02142 USA
Phone: (617) 253-3361
Fax: (617) 253-1330
Web page: http://econ-www.mit.edu/
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Postal: MASSACHUSETTS INSTITUTE OF TECHNOLOGY (MIT), DEPARTMENT OF ECONOMICS, 50 MEMORIAL DRIVE CAMBRIDGE MASSACHUSETTS 02142 USA
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Keywords: health policy ; labour market ; labour movements;

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References

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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  1. Jonathan Gruber & Brigitte Madrian, 1993. "Health Insurance and Early Retirement: Evidence from the Availability of Continuation Coverage," NBER Working Papers 4594, National Bureau of Economic Research, Inc.
  2. Gruber, J., 1992. "State Mandated Benefits and Employer Provided Health Insurance," Working papers 92-18, Massachusetts Institute of Technology (MIT), Department of Economics.
  3. Ann P. Bartel & George J. Borjas, 1977. "Middle-Age Job Mobility: Its Determinants and Consequences," NBER Working Papers 0161, National Bureau of Economic Research, Inc.
  4. Douglas Holtz-Eakin, 1993. "Health Insurance Provision and Labor Market Efficiency in the United States," NBER Working Papers 4388, National Bureau of Economic Research, Inc.
  5. Olivia S. Mitchell, 1982. "Fringe Benefits and Labor Mobility," Journal of Human Resources, University of Wisconsin Press, vol. 17(2), pages 286-298.
  6. Madrian, Brigitte C, 1994. "Employment-Based Health Insurance and Job Mobility: Is There Evidence of Job-Lock?," The Quarterly Journal of Economics, MIT Press, vol. 109(1), pages 27-54, February.
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Citations

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Cited by:
  1. Jonathan Gruber, 1997. "Health Insurance for Poor Women and Children in the U.S.: Lessons from the Past Decade," NBER Chapters, in: Tax Policy and the Economy, Volume 11, pages 169-211 National Bureau of Economic Research, Inc.
  2. Gruber, J. & Madrian, B.C., 1994. "Health Insurance Availability and the Retirement Decision," Working papers 94-04, Massachusetts Institute of Technology (MIT), Department of Economics.
  3. 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.
  4. Susan Athey & Guido W. Imbens, 2006. "Identification and Inference in Nonlinear Difference-in-Differences Models," Econometrica, Econometric Society, vol. 74(2), pages 431-497, 03.
  5. Jonathan Gruber & Brigitte C. Madrian, 1995. "Non-Employment and Health Insurance Coverage," NBER Working Papers 5228, National Bureau of Economic Research, Inc.
  6. Madrian, Brigitte C, 1994. "Employment-Based Health Insurance and Job Mobility: Is There Evidence of Job-Lock?," The Quarterly Journal of Economics, MIT Press, vol. 109(1), pages 27-54, February.
  7. 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.
  8. Herzlinger, Regina E., 2010. "Healthcare reform and its implications for the U.S. economy," Business Horizons, Elsevier, vol. 53(2), pages 105-117, March.
  9. Douglas Holtz-Eakin & John R. Penrod & Harvey S. Rosen, 1994. "Health Insurance and the Supply of Entrepreneurs," NBER Working Papers 4880, National Bureau of Economic Research, Inc.
  10. Liu, Kang Ernest & Chang, Hung-Hao & Chern, Wen S., 2008. "Changes in Fruit and Vegetable Consumption over Time and across Regions in China: A Difference-in-Differences Analysis with Quantile Regression," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6531, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  11. Douglas Holtz-Eakin, . "Job-Lock: An Impediment to Labor Mobility? Is Health Insurance Crippling the Labor Market?," Economics Public Policy Brief Archive 10, Levy Economics Institute.
  12. David J. Vanness, 2003. "A structural econometric model of family valuation and choice of employer-sponsored health insurance in the United States," Health Economics, John Wiley & Sons, Ltd., vol. 12(9), pages 771-790.
  13. Dan A. Black, 1996. "Family Health Benefits and Worker Turnover," Labor and Demography 9604001, EconWPA.

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