Labor Market Consequences of State Health Insurance Regulation

Posted: 30 Dec 2003

See all articles by Robert Kaestner

Robert Kaestner

University of Chicago; National Bureau of Economic Research (NBER)

Kosali Ilayperuma Simon

Indiana University Bloomington - School of Public & Environmental Affairs (SPEA); National Bureau of Economic Research (NBER)

Abstract

This study, based mainly on the 1989-98 March Current Population surveys, finds that state-mandated health insurance benefits and small-group health insurance reform had no statistically significant effects on labor market outcomes such as the quantity of work, wages, and whether an employee worked for a small or large firm. The number and type of state-mandated health insurance benefits were unrelated to weeks of work, wages, and the prevalence of private insurance coverage, but positively associated with weekly work hours. Extensive small-group health insurance reform was associated with a slight decline in the prevalence of private insurance coverage in small firms, and this reform affected both full- and part-time employees. Less extensive reforms were not generally related to the prevalence of private insurance coverage. Overall, the authors do not find strong evidence that insurance regulations affected labor market outcomes, although they appear to cause a small decrease in private coverage.

JEL Classification: J32, J38, I18

Suggested Citation

Kaestner, Robert and Simon, Kosali Ilayperuma, Labor Market Consequences of State Health Insurance Regulation. Available at SSRN: https://ssrn.com/abstract=340440

Robert Kaestner

University of Chicago ( email )

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Chicago, IL 60637
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National Bureau of Economic Research (NBER)

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Kosali Ilayperuma Simon (Contact Author)

Indiana University Bloomington - School of Public & Environmental Affairs (SPEA) ( email )

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Bloomington, IN 47405
United States

National Bureau of Economic Research (NBER)

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