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Health Insurance and Job Mobility: Theoryand Evidence

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  • Alan C. Monheit
  • Philip F. Cooper

Abstract

It is widely hypothesized that health insurance deters job mobility because of imperfections in the labor and health insurance markets. This paper describes the nature of the welfare loss attributable to such “job-lock†and reviews several studies that empirically test the job-lock hypothesis. The authors find that estimates of the magnitude and importance of job-lock vary. Studies that support the job-lock hypothesis typically report a 20% to 40% reduction in mobility rates, depending on worker marital status and gender. Their own estimates suggest that although job-lock is present in the labor market, the proportion of workers affected and the magnitude of the welfare loss are less than generally supposed.

Suggested Citation

  • Alan C. Monheit & Philip F. Cooper, 1994. "Health Insurance and Job Mobility: Theoryand Evidence," ILR Review, Cornell University, ILR School, vol. 48(1), pages 68-85, October.
    • Handle: RePEc:sae:ilrrev:v:48:y:1994:i:1:p:68-85
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    Cited by:

    1. Xuguang Guo & Ran Tao, 2015. "Health Benefit Downward Rigidity: Employers’ Responses to Rising Insurance Costs," Risk Management and Insurance Review, American Risk and Insurance Association, vol. 18(2), pages 217-241, September.
    2. Jonathan Gruber, 1998. "Health Insurance and the Labor Market," NBER Working Papers 6762, National Bureau of Economic Research, Inc.
    3. repec:eee:labchp:v:3:y:1999:i:pc:p:3309-3416 is not listed on IDEAS
    4. Erhan Artuc & Gladys Lopez-Acevedo & Raymond Robertson & Daniel Samaan, 2019. "Exports to Jobs," World Bank Publications - Books, The World Bank Group, number 31274, December.
    5. Chute, Benjamin W. & Wunnava, Phanindra V., 2015. "Is There a Link Between Employer-Provided Health Insurance and Job Mobility? Evidence from Recent Micro Data," IZA Discussion Papers 8989, Institute of Labor Economics (IZA).
    6. Jane G. Gravelle & Sean Lowry, 2016. "The Affordable Care Act, Labor Supply, and Social Welfare," National Tax Journal, National Tax Association;National Tax Journal, vol. 69(4), pages 863-882, December.

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