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

  • 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)

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.

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File URL: http://hdl.handle.net/10.1002/hec.1191
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Article provided by John Wiley & Sons, Ltd. in its journal Health Economics.

Volume (Year): 16 (2007)
Issue (Month): 7 ()
Pages: 719-737

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Handle: RePEc:wly:hlthec:v:16:y:2007:i:7:p:719-737
Contact details of provider: Web page: http://www3.interscience.wiley.com/cgi-bin/jhome/5749

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  1. 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.
  2. Janet Currie & Brigitte C. Madrian, 1998. "Health, Health Insurance and the Labor Market," JCPR Working Papers 27, Northwestern University/University of Chicago Joint Center for Poverty Research.
  3. McDonough, Peggy & Amick, Benjamin C., 2001. "The social context of health selection: a longitudinal study of health and employment," Social Science & Medicine, Elsevier, vol. 53(1), pages 135-145, July.
  4. Kevin T. Stroupe & Eleanor D. Kinney & Thomas J. Kniesner, 2000. "Chronic Illness and Health Insurance-Related Job Lock," Center for Policy Research Working Papers 19, Center for Policy Research, Maxwell School, Syracuse University.
  5. Thomas C. Buchmueller & Robert G. Valletta, 1996. "The effect of health insurance on married female labor supply," Working Papers in Applied Economic Theory 96-09, Federal Reserve Bank of San Francisco.
  6. Cathy Bradley & David Neumark & Heather Bednarek & Maryjean Schenk, 2004. "Short-term Effects of Breast Cancer on Labor Market Attachment: Results from a Longitudinal Study," PPIC Working Papers 2004.01, Public Policy Institute of California.
  7. 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 223-55, March-Apr.
  8. 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.
  9. Jonathan Gruber & Brigitte C. Madrian, 1994. "Health insurance and job mobility: The effects of public policy on job-lock," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 48(1), pages 86-102, October.
  10. Cathy J. Bradley & Heather Bednarek & David Neumark, 2001. "Breast Cancer Survival, Work, and Earnings," NBER Working Papers 8134, National Bureau of Economic Research, Inc.
  11. Scott J. Adams, 2004. "Employer-provided Health Insurance and Job Change," Contemporary Economic Policy, Western Economic Association International, vol. 22(3), pages 357-369, 07.
  12. Courtney C. Coile, 2004. "Health Shocks and Couples' Labor Supply Decisions," NBER Working Papers 10810, National Bureau of Economic Research, Inc.
  13. Susan L. Ettner & Richard G. Frank & Ronald C. Kessler, 1997. "The Impact of Psychiatric Disorders on Labor Market Outcomes," NBER Working Papers 5989, National Bureau of Economic Research, Inc.
  14. Susan L. Ettner & Richard G. Frank & Ronald C. Kessler, 1997. "The Impact of psychiatric disorders on labor market outcomes," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 51(1), pages 64-81, October.
  15. Duncan, Greg J & Hill, Daniel H, 1985. "An Investigation of the Extent and Consequences of Measurement Error in Labor-Economic Survey Data," Journal of Labor Economics, University of Chicago Press, vol. 3(4), pages 508-32, October.
  16. Chou, Y. J. & Staiger, Douglas, 2001. "Health insurance and female labor supply in Taiwan," Journal of Health Economics, Elsevier, vol. 20(2), pages 187-211, March.
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