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Employer-provided Health Insurance and Labor Supply of Married Women

Author

Listed:
  • Merve Cebi

    (Department of Economics, University of Massachusetts Dartmouth, 285 Old Westport Road, North Dartmouth, MA 02747, USA.)

  • Chunbei Wang

    (Department of Economics, University of Massachusetts Dartmouth, 285 Old Westport Road, North Dartmouth, MA 02747, USA.)

Abstract

This work presents new evidence on the relationship between husbands’ health insurance and wives’ labor supply. Several studies using cross-sectional data have suggested that spousal coverage reduces wives’ labor supply; however, these estimates potentially suffer from bias due to simultaneity of wives’ labor supply and husbands’ health insurance. This paper attempts to obtain consistent estimates by applying several panel data estimators to data from the National Longitudinal Survey of Youth. The estimates suggest that the negative relationship found in cross-sections results mainly from spousal sorting and selection; controlling for unobserved heterogeneity leads to a smaller estimated effect of spousal coverage on wives’ labor supply.

Suggested Citation

  • Merve Cebi & Chunbei Wang, 2013. "Employer-provided Health Insurance and Labor Supply of Married Women," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 39(4), pages 493-510, September.
    • Handle: RePEc:pal:easeco:v:39:y:2013:i:4:p:493-510
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    Cited by:

    1. 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 2017-017, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).

    More about this item

    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J32 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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