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

  • Gruber, Jonathan
  • Hanratty, Maria

The authors study the employment consequences of national health insurance in Canada, using the fact that national health insurance was introduced on a staggered basis across Canadian provinces. They use monthly data on employment, wages, and hours across eight industries and ten provinces over the 1961-75 period. The authors find that employment rose after the introduction of national health insurance; wages increased as well, while average hours were unchanged. They also find lower rates of employment and wage growth in provinces that financed national health insurance with general revenues rather than lump sum premiums and lower rates of wage growth in provinces with high initial levels of private insurance coverage.

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Article provided by American Statistical Association in its journal Journal of Business and Economic Statistics.

Volume (Year): 13 (1995)
Issue (Month): 2 (April)
Pages: 163-73

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Handle: RePEc:bes:jnlbes:v:13:y:1995:i:2:p:163-73
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  1. Summers, Lawrence H & Gruber, Jonathan & Vergara, Rodrigo, 1993. "Taxation and the Structure of Labor Markets: The Case of Corporatism," The Quarterly Journal of Economics, MIT Press, vol. 108(2), pages 385-411, May.
  2. 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.
  3. Summers, Lawrence H, 1989. "Some Simple Economics of Mandated Benefits," American Economic Review, American Economic Association, vol. 79(2), pages 177-83, May.
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