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The Labor Market Effects of Introducing National Health Insurance: Evidence from Canada

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  • Jonathan Gruber
  • Maria Hanratty

Abstract

While National Health Insurance (NHI) plans in the U.S. are often opposed on the basis of their potential disemployment effects, there is no existing evidence on the effects of NHI on employment. We provide such evidence by examining the employment consequences of NHI in Canada, using the fact that NHI was introduced on a staggered basis across the Canadian provinces. We examine monthly data on employment, wages, and hours across 8 industries and 10 provinces over the 1961- 1975 period. We find that employment actually rose after the introduction of NHI; wages increased as well, while average hours were unchanged.

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Bibliographic Info

Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 4589.

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Date of creation: Dec 1993
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Publication status: published as Journal of Business & Economic Statistics, April 1995, vol. 13, no. 2, pp. 163-173.
Handle: RePEc:nbr:nberwo:4589

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  1. Summers, Lawrence H, 1989. "Some Simple Economics of Mandated Benefits," American Economic Review, American Economic Association, vol. 79(2), pages 177-83, May.
  2. Lawrence H. Summers & Jonathan Gruber & Rodrigo Vergara, 1992. "Taxation and the Structure of Labor Markets: The Case of Corporatism," NBER Working Papers 4063, National Bureau of Economic Research, Inc.
  3. Joseph P. Newhouse, 1992. "Medical Care Costs: How Much Welfare Loss?," Journal of Economic Perspectives, American Economic Association, vol. 6(3), pages 3-21, Summer.
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Cited by:
  1. Thomas F. Crossley & Paul Grootendorst & Sule Kokkmaz & Michael R. Veall, 2000. "The Effects of Drug Subsidies on Out-of-Poket Prescription Drug Expenditures by seniors: regional Evidence from Canada," CEPR Discussion Papers 422, Centre for Economic Policy Research, Research School of Economics, Australian National University.
  2. Wagstaff, Adam, 2009. "Social Health Insurance vs. Tax-Financed Health Systems--Evidence from the OECD," Policy Research Working Paper Series 4821, The World Bank.
  3. World Bank, 2007. "Healthy Development : The World Bank Strategy for Health, Nutrition, and Population Results," World Bank Publications, The World Bank, number 6843.
  4. Jason Murasko, 2008. "Married Women’s Labor Supply and Spousal Health Insurance Coverage in the United States: Results from Panel Data," Journal of Family and Economic Issues, Springer, vol. 29(3), pages 391-406, September.
  5. Vita, Michael G., 2001. "Regulatory restrictions on selective contracting: an empirical analysis of "any-willing-provider" regulations," Journal of Health Economics, Elsevier, vol. 20(6), pages 955-966, November.
  6. Steven F. Lehrer & Nuno Sousa Pereira, 2008. "Worker Sorting, Health Insurance and Wages: Further Evidence from Displaced Workers in the United States," CEF.UP Working Papers 0804, Universidade do Porto, Faculdade de Economia do Porto.
  7. Husain, Muhammad Jami, 2010. "Contribution of health to economic development: A survey and overview," Economics - The Open-Access, Open-Assessment E-Journal, Kiel Institute for the World Economy, vol. 4(14), pages 1-52.
  8. Haizhen Lin, 2010. "Do Minimum Quality Standards Improve Quality? A Case Study of the Nursing Home Industry," Working Papers 2010-01, Indiana University, Kelley School of Business, Department of Business Economics and Public Policy.
  9. Kamhon Kan & Yen-Ling Lin, 2009. "The labor market effects of national health insurance: evidence from Taiwan," Journal of Population Economics, Springer, vol. 22(2), pages 311-350, April.
  10. Leora Friedberg, 1998. "Did Unilateral Divorce Raise Divorce Rates? Evidence from Panel Data," NBER Working Papers 6398, National Bureau of Economic Research, Inc.

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