Family Health Benefits and Worker Turnover
AbstractIn this paper, I examine the impact of employer-provided health benefits on job turnover. Because many employer-provided plans extend coverage to a worker's entire family, the value of an employer's employment offer to a worker depends on whether the worker's spouse provides the family with health benefits. If a worker's spouse has an employer-provided health insurance for their family, the worker will value employment offers with and without health insurance benefits differently than a worker whose spouse does not have employer-provided health benefits. Importantly, this distortion arises from the reliance on employer-provided benefits and is independent of any pre-existing conditions clauses or issues concerning the portability of health plans. The estimates suggest that spouse-provided benefits substantially increase the likelihood of turnover.
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Date of creation: 01 Apr 1996
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turnover; health insurance; fringe benefits;
Find related papers by JEL classification:
- J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
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