IDEAS home Printed from
   My bibliography  Save this paper

Worker Sorting and Health Insurance Coverage: Evidence from Displaced Workers


  • Steven F. Lehrer

    () (School of Policy Studies and Department of Economics, Queen’s University)

  • Nuno Sousa Pereira

    () (CETE, Faculdade de Economia, Universidade do Porto)


Understanding the causes of the dramatic rise in health insurance costs in the United States over the past two decades is of increasing importance to employers and policymakers. While past studies focus primarily on macroeconomic developments and changes in the health sector, little attention has been paid to the changing demographics of individuals working for firms that provide health insurance. We explore the experiences of displaced workers who change jobs for arguably exogenous reasons and decompose the overall effect of health insurance on wages to observed and unobserved components. We find that while there is reduced selection bias due to observed factors, the role of selection based on unobservables has nearly doubled over the last decade suggesting that those who need health insurance shop for it.

Suggested Citation

  • Steven F. Lehrer & Nuno Sousa Pereira, 2005. "Worker Sorting and Health Insurance Coverage: Evidence from Displaced Workers," CEF.UP Working Papers 0503, Universidade do Porto, Faculdade de Economia do Porto.
  • Handle: RePEc:por:cetedp:0503

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    More about this item


    Health insurance; Worker sorting; Displacement; Comparative advantage; Non-linear instrumental variables.;

    JEL classification:

    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
    • J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:por:cetedp:0503. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ana Bonanca). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.