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on Insurance Economics |
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Issue of 2005‒05‒07
one paper chosen by Soumitra K Mallick Indian Institute of Social Welfare and Bussiness Management |
| By: | Cathy J. 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. |
| JEL: | I12 J22 |
| Date: | 2005–05 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:11304&r=ias |