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Employer-provided health insurance and equilibrium wages with two-sided heterogeneity

Author

Listed:
  • Arnaud Cheron
  • Pierre-Jean Messe
  • Jerome Ronchetti

Abstract

ClassificationThis paper develops an equilibrium search model that allows firms to invest in worker's health. Heterogeneous health endowment of the employee is not observed by the employer, and firms also differ regarding their productivity. We emphasize that wage and health expenditure policies of the employer are tightly related, and show how those policies relate to firms' type. A noticeable implication is that there is an ambiguous relationship between firm's type, wages and health expenditures.-JEL: J3
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Arnaud Cheron & Pierre-Jean Messe & Jerome Ronchetti, 2014. "Employer-provided health insurance and equilibrium wages with two-sided heterogeneity," TEPP Working Paper 2014-16, TEPP.
    • Handle: RePEc:tep:teppwp:wp14-16
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    References listed on IDEAS

    as
    1. Naoki Aizawa & Hanming Fang, 2020. "Equilibrium Labor Market Search and Health Insurance Reform," Journal of Political Economy, University of Chicago Press, vol. 128(11), pages 4258-4336.
    2. Jonathan Gruber & Alan B. Krueger, 1991. "The Incidence of Mandated Employer-Provided Insurance: Lessons from Workers' Compensation Insurance," NBER Chapters, in: Tax Policy and the Economy, Volume 5, pages 111-144, National Bureau of Economic Research, Inc.
    3. 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 223-255, March-Apr.
    4. Brigitte C. Madrian, 1994. "Employment-Based Health Insurance and Job Mobility: Is there Evidence of Job-Lock?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 109(1), pages 27-54.
    5. Matthew S. Dey & Christopher J. Flinn, 2005. "An Equilibrium Model of Health Insurance Provision and Wage Determination," Econometrica, Econometric Society, vol. 73(2), pages 571-627, March.
    6. Jonathan Gruber & Brigitte C. Madrian, 2002. "Health Insurance, Labor Supply, and Job Mobility: A Critical Review of the Literature," JCPR Working Papers 255, Northwestern University/University of Chicago Joint Center for Poverty Research.
    7. Summers, Lawrence H, 1989. "Some Simple Economics of Mandated Benefits," American Economic Review, American Economic Association, vol. 79(2), pages 177-183, May.
    8. repec:fth:prinin:279 is not listed on IDEAS
    9. Jonathan Gruber & Alan Krueger, 1990. "The Incidence of Mandated Employer-Provided Insurance: Lessons from Workers' Compensations Insurance," Working Papers 659, Princeton University, Department of Economics, Industrial Relations Section..
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    More about this item

    JEL classification:

    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs

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