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

  • Cathy Bradley
  • David Neumark
  • Zhehui Luo
  • Heather L. Bednarek

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 Public Policy Institute of California in its series PPIC Working Papers with number 2005.02.

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Length: 37 pages
Date of creation: Apr 2005
Date of revision:
Handle: RePEc:ppi:ppicwp:2005.02
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  1. 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.
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  3. 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.
  4. 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.
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  7. Courtney C. Coile, 2004. "Health Shocks and Couples' Labor Supply Decisions," NBER Working Papers 10810, National Bureau of Economic Research, Inc.
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  10. 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.
  11. 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.
  12. 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.
  13. Jonathan Gruber & Brigitte C. Madrian, 1994. "Health Insurance and Job Mobility: The Effects of Public Policy on Job-Lock," ILR Review, Cornell University, ILR School, vol. 48(1), pages 86-102, October.
  14. 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.
  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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