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The effects of the affordable care act dependent coverage mandate on parents’ labor market outcomes

Seonghoon Kim and Kanghyock Koh

Labour Economics, 2022, vol. 75, issue C

Abstract: We examine the labor market impacts of the Affordable Care Act dependent mandate (ACA-DM), which has significantly increased dependent children's health insurance coverage through parents’ employer-sponsored health benefits. Using data from the American Community Survey, we find that the ACA-DM reduced parents’ annual wages by about $2,600. However, the probability of employment and working hours only decreased marginally. The back-of-the-envelope calculation indicates that the magnitude of the estimated wage impact is similar to the increased insurance premium of a family plan due to the ACA-DM. These findings imply that a deadweight loss associated with the expansion of dependent health coverage is likely to be small as an increase in employers’ labor costs is offset by a reduction in parents’ wages without significant reductions in labor inputs.

Keywords: The affordable care act dependent mandate; Dependent health insurance coverage; Parents’ labor market outcomes; Deadweight loss (search for similar items in EconPapers)
JEL-codes: H51 I18 J32 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:labeco:v:75:y:2022:i:c:s0927537122000215

DOI: 10.1016/j.labeco.2022.102128

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