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Who Pays the High Health Costs of Older Workers? Evidence from Prostate Cancer Screening Mandates

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  • James Bailey

    ()
    (Department of Economics, Temple University)

Abstract

Between 1992 and 2009, 30 US states adopted laws mandating that health insurance plans cover screenings for prostate cancer. Because prostate cancer screenings are used almost exclusively by men over age 50, these mandates raise the cost of insuring older men relative to other groups. This paper uses a triple-difference empirical strategy to take advantage of this quasi-random natural experiment in raising the cost of employing older workers. Using IPUMS data from the March Supplement of the Current Population Survey, this paper finds that the increased cost of insuring older workers results in their receiving 2.8% lower hourly wages, being 2% less likely to be employed, and being 0.7% less likely to have employer-sponsored health insurance.

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File URL: http://www.cla.temple.edu/RePEc/documents/DETU_13_02.pdf
File Function: First version, 2013
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Bibliographic Info

Paper provided by Department of Economics, Temple University in its series DETU Working Papers with number 1302.

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Date of creation: Sep 2013
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Handle: RePEc:tem:wpaper:1302

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Web page: http://www.cla.temple.edu/economics/
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Related research

Keywords: Older Workers; Prostate Cancer Screening; Health Insurance; Mandated Benefits; Triple-Difference;

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  1. Bound, John & Schoenbaum, Michael & Stinebrickner, Todd R. & Waidmann, Timothy, 1999. "The dynamic effects of health on the labor force transitions of older workers," Labour Economics, Elsevier, vol. 6(2), pages 179-202, June.
  2. Marianne Bertrand & Esther Duflo & Sendhil Mullainathan, 2004. "How Much Should We Trust Differences-in-Differences Estimates?," The Quarterly Journal of Economics, MIT Press, vol. 119(1), pages 249-275, February.
  3. Kowalski Amanda E. & Congdon William J. & Showalter Mark H., 2008. "State Health Insurance Regulations and the Price of High-Deductible Policies," Forum for Health Economics & Policy, De Gruyter, vol. 11(2), pages 1-26, November.
  4. David N van der Goes & Justin Wang & Katharine C Wolchik, 2011. "Effect of State Health Insurance Mandates on Employer-provided Health Insurance," Eastern Economic Journal, Palgrave Macmillan, vol. 37(4), pages 437-449.
  5. Buchmueller, Thomas C. & DiNardo, John & Valletta, Robert G., 2009. "The Effect of an Employer Health Insurance Mandate on Health Insurance Coverage and the Demand for Labor: Evidence from Hawaii," IZA Discussion Papers 4152, Institute for the Study of Labor (IZA).
  6. James Bailey, 2013. "The Effect of Health Insurance Benefit Mandates on Premiums," Eastern Economic Journal, Palgrave Macmillan, vol. 40(1), pages 119-127, December.
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