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Does government health insurance reduce job lock and job push?

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  • Scott Barkowski

Abstract

I study job lock and job push, twin phenomena believed to be partially due to employment‐contingent health insurance (ECHI). Using variation in Medicaid eligibility among household members of male workers to identify changes in those workers' reliance on ECHI, I estimate notable job lock and job push effects. For married male workers, a 15 percentage point increase in the likelihood a household member is eligible for Medicaid increases the rate of voluntary job exits over a four‐month period by 14%. For job push, the same increase in a household member's likelihood of Medicaid eligibility reduces the transition rate into jobs with ECHI among all male workers by 8%.

Suggested Citation

  • Scott Barkowski, 2020. "Does government health insurance reduce job lock and job push?," Southern Economic Journal, John Wiley & Sons, vol. 87(1), pages 122-169, July.
  • Handle: RePEc:wly:soecon:v:87:y:2020:i:1:p:122-169
    DOI: 10.1002/soej.12434
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    References listed on IDEAS

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    1. Gruber, Jonathan & Madrian, Brigitte C., 1997. "Employment separation and health insurance coverage," Journal of Public Economics, Elsevier, vol. 66(3), pages 349-382, December.
    2. Janet Currie & Jonathan Gruber, 1996. "Health Insurance Eligibility, Utilization of Medical Care, and Child Health," The Quarterly Journal of Economics, Oxford University Press, vol. 111(2), pages 431-466.
    3. Jonathan Gruber & Aaron Yelowitz, 1999. "Public Health Insurance and Private Savings," Journal of Political Economy, University of Chicago Press, vol. 107(6), pages 1249-1274, December.
    4. A. Colin Cameron & Jonah B. Gelbach & Douglas L. Miller, 2011. "Robust Inference With Multiway Clustering," Journal of Business & Economic Statistics, Taylor & Francis Journals, vol. 29(2), pages 238-249, April.
    5. 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.
    6. Brigitte C. Madrian, 1994. "Employment-Based Health Insurance and Job Mobility: Is there Evidence of Job-Lock?," The Quarterly Journal of Economics, Oxford University Press, vol. 109(1), pages 27-54.
    7. Aaron S. Yelowitz, 1995. "The Medicaid Notch, Labor Supply, and Welfare Participation: Evidence from Eligibility Expansions," The Quarterly Journal of Economics, Oxford University Press, vol. 110(4), pages 909-939.
    8. David M. Cutler & Jonathan Gruber, 1996. "Does Public Insurance Crowd out Private Insurance?," The Quarterly Journal of Economics, Oxford University Press, vol. 111(2), pages 391-430.
    9. Gruber, Jonathan & Simon, Kosali, 2008. "Crowd-out 10 years later: Have recent public insurance expansions crowded out private health insurance?," Journal of Health Economics, Elsevier, vol. 27(2), pages 201-217, March.
    10. Mark C. Berger & Dan A. Black & Frank A. Scott, 2004. "Is There Job Lock? Evidence from the Pre-HIPAA Era," Southern Economic Journal, Southern Economic Association, vol. 70(4), pages 953-976, April.
    11. Katherine Baicker & Amy Finkelstein & Jae Song & Sarah Taubman, 2014. "The Impact of Medicaid on Labor Market Activity and Program Participation: Evidence from the Oregon Health Insurance Experiment," American Economic Review, American Economic Association, vol. 104(5), pages 322-328, May.
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    Cited by:

    1. Chatterji, Pinka & Brandon, Peter & Markowitz, Sara, 2016. "Job mobility among parents of children with chronic health conditions: Early effects of the 2010 Affordable Care Act," Journal of Health Economics, Elsevier, vol. 48(C), pages 26-43.

    More about this item

    JEL classification:

    • I13 - Health, Education, and Welfare - - Health - - - Health Insurance, Public and Private
    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers

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