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

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

Abstract

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.

Suggested Citation

  • Cathy Bradley & David Neumark & Zhehui Luo & Heather L. Bednarek, 2005. "Employment-Contingent Health Insurance, Illness, and Labor Supply of Women: Evidence from Married Women with Breast Cancer," PPIC Working Papers 2005.02, Public Policy Institute of California.
    • Handle: RePEc:ppi:ppicwp:2005.02
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    Citations

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    Cited by:

    1. Schurer, Stefanie, 2017. "Bouncing back from health shocks: Locus of control and labor supply," Journal of Economic Behavior & Organization, Elsevier, vol. 133(C), pages 1-20.
    2. Schurer, Stefanie, 2014. "Bouncing Back from Health Shocks: Locus of Control, Labor Supply, and Mortality," IZA Discussion Papers 8203, Institute of Labor Economics (IZA).
    3. Eskil Heinesen & Christophe Kolodziejczyk & Jacob Ladenburg & Ingelise Andersen & Karsten Thielen, 2017. "Return to work after cancer and pre-cancer job dissatisfaction," Applied Economics, Taylor & Francis Journals, vol. 49(49), pages 4982-4998, October.
    4. Fairlie, Robert W. & Kapur, Kanika & Gates, Susan, 2011. "Is employer-based health insurance a barrier to entrepreneurship?," Journal of Health Economics, Elsevier, vol. 30(1), pages 146-162, January.
    5. Aouad, Marion, 2023. "The intracorrelation of family health insurance and job lock," Journal of Health Economics, Elsevier, vol. 90(C).
    6. Jeon, Sung-Hee & Pohl, R. Vincent, 2017. "Health and work in the family: Evidence from spouses’ cancer diagnoses," Journal of Health Economics, Elsevier, vol. 52(C), pages 1-18.
    7. Thomas Barnay & Mohamed Ali Ben Halima & Emmanuel Duguet & Christine Le Clainche & Camille Regaert, 2016. "The effects of breast cancer on individual labour market outcomes: an evaluation from an administrative panel," TEPP Working Paper 2016-05, TEPP.
    8. Zimmer, David M., 2010. "The role of health insurance in labor supply decisions of divorced females," The Quarterly Review of Economics and Finance, Elsevier, vol. 50(2), pages 121-131, May.
    9. Cathy J. Bradley & Lindsay M. Sabik, 2019. "Medicaid expansions and labor supply among low-income childless adults: evidence from 2000 to 2013," International Journal of Health Economics and Management, Springer, vol. 19(3), pages 235-272, December.
    10. David Candon, 2019. "The joint effect of health shocks and eligibility for social security on labor supply," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 20(7), pages 969-988, September.
    11. repec:mrr:papers:wp341 is not listed on IDEAS
    12. Heinesen, Eskil & Imai, Susumu & Maruyama, Shiko, 2018. "Employment, job skills and occupational mobility of cancer survivors," Journal of Health Economics, Elsevier, vol. 58(C), pages 151-175.
    13. Scott Barkowski, 2020. "Does government health insurance reduce job lock and job push?," Southern Economic Journal, John Wiley & Sons, vol. 87(1), pages 122-169, July.
    14. Thomas Barnay & Emmanuel Duguet & Christine Le Clainche, 2019. "The Effects of Breast Cancer on Individual Labour Market Outcomes: An Evaluation from an Administrative Panel in France," Annals of Economics and Statistics, GENES, issue 136, pages 103-126.
    15. Jeon, Sung-Hee & Pohl, R. Vincent, 2019. "Medical innovation, education, and labor market outcomes of cancer patients," Journal of Health Economics, Elsevier, vol. 68(C).
    16. Nga Le Thi Quynh & Groot, Wim & Tomini, Sonila M. & Tomini, Florian, 2017. "Effects of health insurance on labour supply: A systematic review," MERIT Working Papers 2017-017, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    17. Brigitte C. Madrian, 2005. "The U.S. health care system and labor markets," Conference Series ; [Proceedings], Federal Reserve Bank of Boston, vol. 50(Jun), pages 137-163.
    18. Aouad, Marion, 2021. "An Examination of the Intracorrelation of Family Health Insurance," IZA Discussion Papers 14541, Institute of Labor Economics (IZA).
    19. Kolodziejczyk, Christophe & Heinesen, Eskil, 2016. "Labour market participation after breast cancer for employees from the private and public sectors: Educational and sector gradients in the effect of cancer," Economics & Human Biology, Elsevier, vol. 21(C), pages 33-55.
    20. Atsuko Tanaka, 2021. "The effects of sudden health reductions on labor market outcomes: Evidence from incidence of stroke," Health Economics, John Wiley & Sons, Ltd., vol. 30(6), pages 1480-1497, June.

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    More about this item

    JEL classification:

    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor

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