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Is There Job Lock? Evidence from the Pre‐HIPAA Era

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  • Mark C. Berger
  • Dan A. Black
  • Frank A. Scott

Abstract

We estimate discrete time hazard models of employment duration and standard logarithmic wage equations using the 1987 and 1990 panels of the Survey of Income and Program Participation (SIPP) to examine the phenomenon of job lock. We lest for job lock using differences‐in‐differences approaches among those with and without employer‐provided health insurance and family members with and without health problems. We find no statistically significant evidence of job lock on employment duration or wages using this approach. We do find some evidence of shorter employment spells for those with employer‐provided health insurance and spouse‐provided health insurance, and longer employment spells for those with employer‐provided health insurance and large families. Others have interpreted these findings as evidence of job lock. However, the wage equation results using these measures are not consistent with job lock. Although anecdotal evidence makes it clear that some workers have been locked into less‐than‐optimal jobs because of the combination of health problems and employer‐provided health insurance, our results do not suggest that this phenomenon is pervasive in the U.S. economy.

Suggested Citation

  • Mark C. Berger & Dan A. Black & Frank A. Scott, 2004. "Is There Job Lock? Evidence from the Pre‐HIPAA Era," Southern Economic Journal, John Wiley & Sons, vol. 70(4), pages 953-976, April.
  • Handle: RePEc:wly:soecon:v:70:y:2004:i:4:p:953-976
    DOI: 10.1002/j.2325-8012.2004.tb00614.x
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    References listed on IDEAS

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    1. Gruber, Jonathan & Madrian, Brigitte C., 1997. "Employment separation and health insurance coverage," Journal of Public Economics, Elsevier, vol. 66(3), pages 349-382, December.
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    4. Mark C. Berger & Dan A. Black, 1998. "The Duration Of Medicaid Spells: An Analysis Using Flow And Stock Samples," The Review of Economics and Statistics, MIT Press, vol. 80(4), pages 667-675, November.
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    9. Mark C. Berger & Dan A. Black & Frank A. Scott & Amitabh Chandra, 1999. "Health insurance coverage of the unemployed: COBRA and the potential effects of Kassebaum-Kennedy," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 18(3), pages 430-448.
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    2. Aouad, Marion, 2023. "The intracorrelation of family health insurance and job lock," Journal of Health Economics, Elsevier, vol. 90(C).

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