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Employment-Contingent Health Insurance, Illness, and Labor Supply of Women: Evidence from Married Women with Breast Cancer

  • Bradley, Cathy J.

    ()

    (Virginia Commonwealth University)

  • Neumark, David

    ()

    (University of California, Irvine)

  • Luo, Zhehui

    ()

    (Michigan State University)

  • Bednarek, Heather L.

    ()

    (St. Louis University)

We examine the effects of employment-contingent health insurance on married women’s labor supply following a health shock. First, we develop a theoretical model that examines the effects of employment-contingent health insurance on the labor supply response to a health shock, to clarify under what conditions employment-contingent health insurance is likely to dampen the labor supply response. Second, we empirically evaluate this relationship using primary data. The results from our analysis find that – as the model suggests is likely – 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. Employment-contingent health insurance appears to create incentives to remain working and to work at a greater intensity when faced with a serious illness.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 1577.

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Length: 38 pages
Date of creation: Apr 2005
Date of revision:
Publication status: published in: Health Economics, 2007, 16 (7), 719-737
Handle: RePEc:iza:izadps:dp1577
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  1. 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.
  2. 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.
  3. 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.
  4. 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.
  5. Cathy J. Bradley & Heather Bednarek & David Neumark, 2001. "Breast Cancer Survival, Work, and Earnings," NBER Working Papers 8134, National Bureau of Economic Research, Inc.
  6. 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.
  7. 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.
  8. 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.
  9. Kanika Kapur, 1998. "The Impact of health on job mobility: A measure of job lock," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 51(2), pages 282-298, January.
  10. Courtney C. Coile, 2004. "Health Shocks and Couples' Labor Supply Decisions," NBER Working Papers 10810, National Bureau of Economic Research, Inc.
  11. 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.
  12. 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.
  13. Thomas C. Buchmueller & Robert G. Valletta, 1999. "The Effect of Health Insurance on Married Female Labor Supply," Journal of Human Resources, University of Wisconsin Press, vol. 34(1), pages 42-70.
  14. 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.
  15. 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.
  16. 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.
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