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Does employer-provided health insurance constrain labor supply adjustments to health shocks? New evidence on women diagnosed with breast cancer

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  • Bradley, Cathy J.
  • Neumark, David
  • Barkowski, Scott

Abstract

Employment-contingent health insurance may create incentives for ill workers to remain employed at a sufficient level (usually full-time) to maintain access to health insurance coverage. We study employed married women, comparing the labor supply responses to new breast cancer diagnoses of women dependent on their own employment for health insurance with the responses of women who are less dependent on their own employment for health insurance, because of actual or potential access to health insurance through their spouse's employer. We find evidence that women who depend on their own job for health insurance reduce their labor supply by less after a diagnosis of breast cancer. In the estimates that best control for unobservables associated with health insurance status, the hours reduction for women who continue to work is 8 to 11% smaller. Women's subjective responses to questions about working more to maintain health insurance are consistent with the conclusions from observed behavior.

Suggested Citation

  • Bradley, Cathy J. & Neumark, David & Barkowski, Scott, 2013. "Does employer-provided health insurance constrain labor supply adjustments to health shocks? New evidence on women diagnosed with breast cancer," Journal of Health Economics, Elsevier, vol. 32(5), pages 833-849.
  • Handle: RePEc:eee:jhecon:v:32:y:2013:i:5:p:833-849
    DOI: 10.1016/j.jhealeco.2013.06.008
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    References listed on IDEAS

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    1. John Cawley & Asako S. Moriya & Kosali Simon, 2015. "The Impact of the Macroeconomy on Health Insurance Coverage: Evidence from the Great Recession," Health Economics, John Wiley & Sons, Ltd., vol. 24(2), pages 206-223, February.
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    4. Brigitte C. Madrian, 1994. "Employment-Based Health Insurance and Job Mobility: Is there Evidence of Job-Lock?," The Quarterly Journal of Economics, Oxford University Press, vol. 109(1), pages 27-54.
    5. Donna B. Gilleskie & Byron F. Lutz, 2002. "The Impact of Employer-Provided Health Insurance on Dynamic Employment Transitions," Journal of Human Resources, University of Wisconsin Press, vol. 37(1), pages 129-162.
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    Citations

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    Cited by:

    1. Robert W. Fairlie & Kanika Kapur & Susan Gates, 2016. "Job Lock: Evidence from a Regression Discontinuity Design," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 55(1), pages 92-121, January.
    2. Andrew M. Jones & Nigel Rice & Francesca Zantomio, 2016. "Acute health shocks and labour market outcomes," Working Papers 2016:09, Department of Economics, University of Venice "Ca' Foscari".
    3. Thomas Barnay & Mohamed Ali Ben Halima & Emmanuel Duguet & Christine Le Clainche & Camille Regaert, 2016. "The effects of breast cancer on individual labour market outcomes: an evaluation from an administrative panel," TEPP Working Paper 2016-05, TEPP.
    4. Matthew J. Hill & Nicole Maestas & Kathleen J. Mullen, 2014. "Source of health insurance coverage and employment survival among newly disabled workers: Evidence from the health and retirement study," Economics Working Papers 1451, Department of Economics and Business, Universitat Pompeu Fabra.
    5. Thomas Barnay & Emmanuel Duguet & Christine Le Clainche, 2019. "The Effects of Breast Cancer on Individual Labour Market Outcomes: An Evaluation from an Administrative Panel in France," Annals of Economics and Statistics, GENES, issue 136, pages 103-126.
    6. Trevisan, Elisabetta & Zantomio, Francesca, 2016. "The impact of acute health shocks on the labour supply of older workers: Evidence from sixteen European countries," Labour Economics, Elsevier, vol. 43(C), pages 171-185.
    7. Nga Le Thi Quynh & Groot, Wim & Tomini, Sonila M. & Tomini, Florian, 2017. "Effects of health insurance on labour supply: A systematic review," MERIT Working Papers 017, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    8. Candon, David, 2018. "The effect of cancer on the labor supply of employed men over the age of 65," Economics & Human Biology, Elsevier, vol. 31(C), pages 184-199.
    9. Heinesen, Eskil & Kolodziejczyk, Christophe, 2013. "Effects of breast and colorectal cancer on labour market outcomes—Average effects and educational gradients," Journal of Health Economics, Elsevier, vol. 32(6), pages 1028-1042.
    10. Jeon, Sung-Hee & Pohl, R. Vincent, 2017. "Health and work in the family: Evidence from spouses’ cancer diagnoses," Journal of Health Economics, Elsevier, vol. 52(C), pages 1-18.
    11. Robert W. Fairlie & Kanika Kapur & Susane Gates, 2015. "Job Lock: Evidence from a Regression Discontinuity Design," CESifo Working Paper Series 5297, CESifo Group Munich.
    12. Matthew Hill & Nicole Maestas & Kathleen J. Mullen, 2014. "Source of Health Insurance Coverage and Employment Survival Among Newly Disabled Workers Evidence from the Health and Retirement Study," Working Papers WR-1040, RAND Corporation.

    More about this item

    Keywords

    Health insurance; Labor supply;

    JEL classification:

    • I13 - Health, Education, and Welfare - - Health - - - Health Insurance, Public and Private
    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General

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