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Who Pays the High Health Costs of Older Workers? Evidence from Prostate Cancer Screening Mandates

  • James Bailey

    ()

    (Department of Economics, Temple University)

Between 1992 and 2009, 30 US states adopted laws mandating that health insurance plans cover screenings for prostate cancer. Because prostate cancer screenings are used almost exclusively by men over age 50, these mandates raise the cost of insuring older men relative to other groups. This paper uses a triple-difference empirical strategy to take advantage of this quasi-random natural experiment in raising the cost of employing older workers. Using IPUMS data from the March Supplement of the Current Population Survey, this paper finds that the increased cost of insuring older workers results in their receiving 2.8% lower hourly wages, being 2% less likely to be employed, and being 0.7% less likely to have employer-sponsored health insurance.

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File URL: http://www.cla.temple.edu/RePEc/documents/DETU_13_02.pdf
File Function: First version, 2013
Download Restriction: no

Paper provided by Department of Economics, Temple University in its series DETU Working Papers with number 1302.

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Date of creation: Sep 2013
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Handle: RePEc:tem:wpaper:1302
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Web page: http://www.cla.temple.edu/economics/

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  1. Kowalski Amanda E. & Congdon William J. & Showalter Mark H., 2008. "State Health Insurance Regulations and the Price of High-Deductible Policies," Forum for Health Economics & Policy, De Gruyter, vol. 11(2), pages 1-26, November.
  2. James Bailey, 2013. "The Effect of Health Insurance Benefit Mandates on Premiums," Eastern Economic Journal, Palgrave Macmillan, vol. 40(1), pages 119-127, December.
  3. Stephan F. Gohmann, 2009. "The Effect of State Mandates on Health Insurance Premiums," Journal of Private Enterprise, The Association of Private Enterprise Education, vol. 24(Spring 20), pages 59-73.
  4. Marianne Bertrand & Esther Duflo & Sendhil Mullainathan, 2002. "How Much Should We Trust Differences-in-Differences Estimates?," NBER Working Papers 8841, National Bureau of Economic Research, Inc.
  5. Bound, John & Schoenbaum, Michael & Stinebrickner, Todd R. & Waidmann, Timothy, 1999. "The dynamic effects of health on the labor force transitions of older workers," Labour Economics, Elsevier, vol. 6(2), pages 179-202, June.
  6. Thomas C. Buchmueller & John DiNardo & Robert G. Valletta, 2009. "The effect of an employer health insurance mandate on health insurance coverage and the demand for labor: evidence from Hawaii," Working Paper Series 2009-08, Federal Reserve Bank of San Francisco.
  7. David N van der Goes & Justin Wang & Katharine C Wolchik, 2011. "Effect of State Health Insurance Mandates on Employer-provided Health Insurance," Eastern Economic Journal, Palgrave Macmillan, vol. 37(4), pages 437-449.
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