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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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    4. 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.
    5. Mark L Bryan & Nigel Rice & Jennifer Roberts & Cristina Sechel, 2022. "Mental Health and Employment: A Bounding Approach Using Panel Data," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 84(5), pages 1018-1051, October.
    6. Li, Fanlue & He, Ke & Wang, Yuejie & Zhang, Junbiao, 2021. "Does Indoor Air Pollution from Solid Fuels Influence the Mental Health of Rural Residents? Evidence from China," 2021 Conference, August 17-31, 2021, Virtual 315024, International Association of Agricultural Economists.
    7. Pankaj C. Patel & Cornelius A. Rietveld & Ingrid Verheul, 2021. "Attention Deficit Hyperactivity Disorder (ADHD) and Earnings in Later-Life Self-Employment," Entrepreneurship Theory and Practice, , vol. 45(1), pages 43-63, January.
    8. Robert Nathenson & Michael R. Richards, 2018. "Do coverage mandates affect direct-to-consumer advertising for pharmaceuticals? Evidence from parity laws," International Journal of Health Economics and Management, Springer, vol. 18(3), pages 321-336, September.
    9. Philip Armour & Claire O’Hanlon, 2019. "How Does Supplemental Medicare Coverage Affect the Disabled Under-65 Population?: An Exploratory Analysis of the Health Effects of States’ Medigap Policies for SSDI Beneficiaries," NBER Working Papers 25564, National Bureau of Economic Research, Inc.
    10. Bryan, M.; & Roberts, J.; & Sechel, C.;, 2019. "The Effect of Mental Health on Employment:Accounting for Selection Bias," Health, Econometrics and Data Group (HEDG) Working Papers 19/14, HEDG, c/o Department of Economics, University of York.
    11. Monica Harber Carney, 2021. "The impact of mental health parity laws on birth outcomes," Health Economics, John Wiley & Sons, Ltd., vol. 30(4), pages 748-765, April.
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    More about this item

    Keywords

    Mental health; Benefit mandates; Insurance; Labor supply;
    All these keywords.

    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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