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Employment-contingent health insurance, illness, and labor supply of women: evidence from married women with breast cancer

Author

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  • Cathy J. Bradley

    (Department of Health Administration and Massey Cancer Center, Virginia Commonwealth University, USA)

  • David Neumark
  • Zhehui Luo

    (Department of Epidemiology, Michigan State University, USA)

  • Heather L. Bednarek

    (Department of Economics, St. Louis University, USA)

Abstract

We examine the effects of employment-contingent health insurance (ECHI) on married women's labor supply following a health shock. First, we develop a theoretical framework that examines the effects of ECHI on the labor supply response to a health shock, which suggests that women with ECHI are less likely to reduce their labor supply in response to a health shock, relative to women with health insurance through their spouse's employer. Second, we empirically examine this relationship based on labor supply responses to breast cancer. We find that health shocks decrease labor supply to a greater extent among women insured by their spouse's policy than among women with health insurance through their own employer, suggesting that ECHI creates incentives to remain working when faced with a serious illness. Copyright © 2006 John Wiley & Sons, Ltd.

Suggested Citation

  • Cathy J. Bradley & David Neumark & Zhehui Luo & Heather L. Bednarek, 2007. "Employment-contingent health insurance, illness, and labor supply of women: evidence from married women with breast cancer," Health Economics, John Wiley & Sons, Ltd., vol. 16(7), pages 719-737.
  • Handle: RePEc:wly:hlthec:v:16:y:2007:i:7:p:719-737
    DOI: 10.1002/hec.1191
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    References listed on IDEAS

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    1. Kevin T. Stroupe & Eleanor D. Kinney & Thomas J.J. Kniesner, 2001. "Chronic Illness and Health Insurance-Related Job Lock," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 20(3), pages 525-544.
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    5. Bradley, Cathy J. & Neumark, David & Bednarek, Heather L. & Schenk, Maryjean, 2005. "Short-term effects of breast cancer on labor market attachment: results from a longitudinal study," Journal of Health Economics, Elsevier, vol. 24(1), pages 137-160, January.
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    7. Bradley, Cathy J. & Bednarek, Heather L. & Neumark, David, 2002. "Breast cancer survival, work, and earnings," Journal of Health Economics, Elsevier, vol. 21(5), pages 757-779, September.
    8. Courtney C. Coile, 2004. "Health Shocks and Couples' Labor Supply Decisions," NBER Working Papers 10810, National Bureau of Economic Research, Inc.
    9. Currie, Janet & Madrian, Brigitte C., 1999. "Health, health insurance and the labor market," Handbook of Labor Economics,in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 50, pages 3309-3416 Elsevier.
    10. Grossman, Michael, 1972. "On the Concept of Health Capital and the Demand for Health," Journal of Political Economy, University of Chicago Press, vol. 80(2), pages 223-255, March-Apr.
    11. Kanika Kapur, 1998. "The Impact of Health on Job Mobility: A Measure of Job Lock," ILR Review, Cornell University, ILR School, vol. 51(2), pages 282-298, January.
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    13. Rogowski, Jeannette & Karoly, Lynn, 2000. "Health insurance and retirement behavior: evidence from the health and retirement survey," Journal of Health Economics, Elsevier, vol. 19(4), pages 529-539, July.
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    Citations

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    Cited by:

    1. Schurer, Stefanie, 2017. "Bouncing back from health shocks: Locus of control and labor supply," Journal of Economic Behavior & Organization, Elsevier, vol. 133(C), pages 1-20.
    2. Thomas Barnay & Mohamed Ali Ben Halima & Emmanuel Duguet & Christine Leclainche & Camille Regaert, 2016. "The Effects Of Breast Cancer On Individual Labour Market Outcomes: An Evaluation From An Administrative Panel," Working Papers halshs-01374467, HAL.
    3. Brigitte C. Madrian, 2005. "The U.S. health care system and labor markets," Conference Series ; [Proceedings], Federal Reserve Bank of Boston, vol. 50(Jun), pages 137-163.
    4. Fairlie, Robert W. & Kapur, Kanika & Gates, Susan, 2011. "Is employer-based health insurance a barrier to entrepreneurship?," Journal of Health Economics, Elsevier, vol. 30(1), pages 146-162, January.
    5. 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.
    6. Kolodziejczyk, Christophe & Heinesen, Eskil, 2016. "Labour market participation after breast cancer for employees from the private and public sectors: Educational and sector gradients in the effect of cancer," Economics & Human Biology, Elsevier, vol. 21(C), pages 33-55.
    7. Schurer, Stefanie, 2014. "Bouncing Back from Health Shocks: Locus of Control, Labor Supply, and Mortality," IZA Discussion Papers 8203, Institute for the Study of Labor (IZA).
    8. Zimmer, David M., 2010. "The role of health insurance in labor supply decisions of divorced females," The Quarterly Review of Economics and Finance, Elsevier, vol. 50(2), pages 121-131, May.
    9. repec:mrr:papers:wp341 is not listed on IDEAS
    10. 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).

    More about this item

    JEL classification:

    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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