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Heterogeneity and the effect of mental health parity mandates on the labor market

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  • Andersen, Martin

Abstract

Health insurance benefit mandates are believed to have adverse effects on the labor market, but efforts to document such effects for mental health parity mandates have had limited success. I show that one reason for this failure is that the association between parity mandates and labor market outcomes vary with mental distress. Accounting for this heterogeneity, I find adverse labor market effects for non-distressed individuals, but favorable effects for moderately distressed individuals and individuals with a moderately distressed family member. On net, I conclude that the mandates are welfare increasing for moderately distressed workers and their families, but may be welfare decreasing for non-distressed individuals.

Suggested Citation

  • Andersen, Martin, 2015. "Heterogeneity and the effect of mental health parity mandates on the labor market," Journal of Health Economics, Elsevier, vol. 43(C), pages 74-84.
  • Handle: RePEc:eee:jhecon:v:43:y:2015:i:c:p:74-84
    DOI: 10.1016/j.jhealeco.2015.06.008
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    References listed on IDEAS

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    Cited by:

    1. Yaa Akosa Antwi & Johanna Catherine Maclean, 2017. "State Health Insurance Mandates and Labor Market Outcomes: New Evidence on Old Questions," NBER Working Papers 23203, National Bureau of Economic Research, Inc.
    2. repec:eee:jhecon:v:55:y:2017:i:c:p:45-60 is not listed on IDEAS
    3. repec:kap:ijhcfe:v:18:y:2018:i:3:d:10.1007_s10754-018-9234-3 is not listed on IDEAS

    More about this item

    Keywords

    Mental health; Benefit mandates; Insurance; Labor supply;

    JEL classification:

    • I13 - Health, Education, and Welfare - - Health - - - Health Insurance, Public and Private
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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