Who Pays the High Health Costs of Older Workers? Evidence from Prostate Cancer Screening Mandates
AbstractBetween 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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Bibliographic InfoPaper provided by Department of Economics, Temple University in its series DETU Working Papers with number 1302.
Date of creation: Sep 2013
Date of revision:
Older Workers; Prostate Cancer Screening; Health Insurance; Mandated Benefits; Triple-Difference;
Find related papers by JEL classification:
- J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
- J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
- I13 - Health, Education, and Welfare - - Health - - - Health Insurance, Public and Private
This paper has been announced in the following NEP Reports:
- NEP-AGE-2013-10-02 (Economics of Ageing)
- NEP-ALL-2013-10-02 (All new papers)
- NEP-HEA-2013-10-02 (Health Economics)
- NEP-IAS-2013-10-02 (Insurance Economics)
- NEP-LAB-2013-10-02 (Labour Economics)
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