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Does Employer-Provided Health Insurance Constrain Labor Supply Adjustments to Health Shocks? New Evidence on Women Diagnosed with Breast Cancer

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  • Cathy J. Bradley
  • David Neumark
  • Scott Barkowski

Abstract

Employment-contingent health insurance creates incentives for ill workers to remain employed at a sufficient level (usually full-time) to maintain access to health insurance coverage. We study employed married women, newly diagnosed with breast cancer, comparing labor supply responses to breast cancer diagnoses between women dependent on their own employment for health insurance and women with access to health insurance through their spouse’s employer. We find evidence that women more dependent on their own job for health insurance reduce their labor supply by less after a diagnosis of breast cancer – the estimate difference is about 5.5 to 7 percent. Women’s subjective responses to questions about working more to maintain health insurance are consistent with the conclusions from observed behavior.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 18060.

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Date of creation: May 2012
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Publication status: published as Bradley, Cathy J. & Neumark, David & Barkowski, Scott, 2013. "Does employer-provided health insurance constrain labor supply adjustments to health shocks? New evidence on women diagnosed with breast cancer," Journal of Health Economics, Elsevier, vol. 32(5), pages 833-849.
Handle: RePEc:nbr:nberwo:18060

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  1. Cawley, John & Moriya, Asako S. & Simon, Kosali, 2011. "The Impact of the Macroeconomy on Health Insurance Coverage: Evidence from the Great Recession," IZA Discussion Papers 6124, Institute for the Study of Labor (IZA).
  2. Cathy Bradley & David Neumark & Meryl Motika, 2012. "The effects of health shocks on employment and health insurance: the role of employer-provided health insurance," International Journal of Health Care Finance and Economics, Springer, Springer, vol. 12(4), pages 253-267, December.
  3. 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.
  4. Kanika Kapur, 1998. "The Impact of health on job mobility: A measure of job lock," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 51(2), pages 282-298, January.
  5. Brigitte C. Madrian, 1993. "Employment-Based Health Insurance and Job Mobility: Is There Evidence ofJob-Lock?," NBER Working Papers 4476, National Bureau of Economic Research, Inc.
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Cited by:
  1. Fairlie, Robert, 2014. "Job Lock: Evidence from a Regression Discontinuity Design," Santa Cruz Department of Economics, Working Paper Series qt4947535x, Department of Economics, UC Santa Cruz.
  2. Heinesen, Eskil & Kolodziejczyk, Christophe, 2013. "Effects of breast and colorectal cancer on labour market outcomes—Average effects and educational gradients," Journal of Health Economics, Elsevier, Elsevier, vol. 32(6), pages 1028-1042.

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