The Labor Market Efects of Introducing National Health Insurance: Evidence from Canada
The authors study the employment consequences of national health insurance in Canada, using the fact that national health insurance was introduced on a staggered basis across Canadian provinces. They use monthly data on employment, wages, and hours across eight industries and ten provinces over the 1961-75 period. The authors find that employment rose after the introduction of national health insurance; wages increased as well, while average hours were unchanged. They also find lower rates of employment and wage growth in provinces that financed national health insurance with general revenues rather than lump sum premiums and lower rates of wage growth in provinces with high initial levels of private insurance coverage.
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