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Health Insurance and Income Inequality

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  • Robert Kaestner
  • Darren Lubotsky

Abstract

Health insurance and other in-kind forms of compensation and government benefits are typically not included in measures of income and analyses of inequality. This omission is important. Given the large and growing cost of health care in the United States and the presence of large government health insurance programs such as Medicaid and Medicare, it is crucial to understand how health insurance and related public policies contribute to measured economic well-being and inequality. Our paper assesses the effect on inequality of the primary government programs that affect health insurance.

Suggested Citation

  • Robert Kaestner & Darren Lubotsky, 2016. "Health Insurance and Income Inequality," Journal of Economic Perspectives, American Economic Association, vol. 30(2), pages 53-78, Spring.
    • Handle: RePEc:aea:jecper:v:30:y:2016:i:2:p:53-78
    Note: DOI: 10.1257/jep.30.2.53
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    References listed on IDEAS

    as
    1. Robert Kaestner & Bowen Garrett & Jiajia Chen & Anuj Gangopadhyaya & Caitlyn Fleming, 2017. "Effects of ACA Medicaid Expansions on Health Insurance Coverage and Labor Supply," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 36(3), pages 608-642, June.
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    11. Wankyo Chung, 2003. "Fringe Benefits and Inequality in the Labor Market," Economic Inquiry, Western Economic Association International, vol. 41(3), pages 517-529, July.
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    13. Congressional Budget Office, 2011. "Trends in the Distribution of Household Income Between 1979 and 2007," Reports 42729, Congressional Budget Office.
    14. Kevin M. Murphy & Robert H. Topel, 2016. "Human Capital Investment, Inequality, and Economic Growth," Journal of Labor Economics, University of Chicago Press, vol. 34(S2), pages 99-127.
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    16. Amy Finkelstein & Nathaniel Hendren & Erzo F. P. Luttmer, 2019. "The Value of Medicaid: Interpreting Results from the Oregon Health Insurance Experiment," Journal of Political Economy, University of Chicago Press, vol. 127(6), pages 2836-2874.
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    Full references (including those not matched with items on IDEAS)

    Citations

    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Chris Sampson’s journal round-up for 30th May 2016
      by Chris Sampson in The Academic Health Economists' Blog on 2016-05-30 16:00:00

    Citations

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    Cited by:

    1. Jae Song & David J Price & Fatih Guvenen & Nicholas Bloom & Till von Wachter, 2019. "Firming Up Inequality," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 134(1), pages 1-50.
    2. Junhao Liu & Anita Mukherjee, 2021. "Medicaid and long‐term care: The effects of penalizing strategic asset transfers," Journal of Risk & Insurance, The American Risk and Insurance Association, vol. 88(1), pages 53-77, March.
    3. Camilo Bohorquez-Penuela, 2020. "Subsidized Health Care and Food Security: Evidence from Colombia," Borradores de Economia 1103, Banco de la Republica de Colombia.
    4. Jaqueson K Galimberti & Stefan Pichler & Regina Pleninger, 2023. "Measuring Inequality Using Geospatial Data," The World Bank Economic Review, World Bank, vol. 37(4), pages 549-569.
    5. Lurie, Ithai Z. & Miller, Corbin L., 2023. "Employer-sponsored health insurance premiums and income in U.S. tax data," Journal of Public Economics, Elsevier, vol. 224(C).
    6. Robert E. Till & Mary Beth Yount, 2019. "Governance and Incentives: Is It Really All about the Money?," Journal of Business Ethics, Springer, vol. 159(3), pages 605-618, October.
    7. Gallagher, Ryan M., 2021. "Income segregation's impact on local public expenditures: Evidence from municipalities and school districts, 1980–2010," Regional Science and Urban Economics, Elsevier, vol. 90(C).

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    More about this item

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies
    • I13 - Health, Education, and Welfare - - Health - - - Health Insurance, Public and Private
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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