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Does Employer-Provided Health Insurance Constrain Labor Supply Adjustments to Health Shocks? New Evidence on Women Diagnosed with Breast Cancer

  • Cathy J. Bradley
  • David Neumark
  • Scott Barkowski

Employment-contingent health insurance creates incentives for ill workers to remain employed at a sufficient level (usually full-time) to maintain access to health insurance coverage. We study employed married women, newly diagnosed with breast cancer, comparing labor supply responses to breast cancer diagnoses between women dependent on their own employment for health insurance and women with access to health insurance through their spouse's employer. We find evidence that women more dependent on their own job for health insurance reduce their labor supply by less after a diagnosis of breast cancer - the estimate difference is about 5.5 to 7 percent. Women's subjective responses to questions about working more to maintain health insurance are consistent with the conclusions from observed behavior.

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File URL: http://www.nber.org/papers/w18060.pdf
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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 18060.

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Date of creation: May 2012
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Publication status: published as Bradley, Cathy J. & Neumark, David & Barkowski, Scott, 2013. "Does employer-provided health insurance constrain labor supply adjustments to health shocks? New evidence on women diagnosed with breast cancer," Journal of Health Economics, Elsevier, vol. 32(5), pages 833-849.
Handle: RePEc:nbr:nberwo:18060
Note: HE LS
Contact details of provider: Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.
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Web page: http://www.nber.org
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  1. Madrian, Brigitte C, 1994. "Employment-Based Health Insurance and Job Mobility: Is There Evidence of Job-Lock?," The Quarterly Journal of Economics, MIT Press, vol. 109(1), pages 27-54, February.
  2. Donna B. Gilleskie & Byron F. Lutz, 2002. "The Impact of Employer-Provided Health Insurance on Dynamic Employment Transitions," Journal of Human Resources, University of Wisconsin Press, vol. 37(1), pages 129-162.
  3. 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.
  4. Cathy J. Bradley & David Neumark & Meryl I. Motika, 2011. "The Effects of Health Shocks on Employment and Health Insurance: The Role of Employer-Provided Health Insurance," NBER Working Papers 17223, National Bureau of Economic Research, Inc.
  5. John Cawley & Asako S. Moriya & Kosali I. Simon, 2011. "The Impact of the Macroeconomy on Health Insurance Coverage: Evidence from the Great Recession," NBER Working Papers 17600, National Bureau of Economic Research, Inc.
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