Government regulation and wages: Evidence from continuing coverage mandates

Johanna Catherine Maclean and Douglas Webber

Labour Economics, 2022, vol. 78, issue C

Abstract: We examine the wage effects of health insurance market regulations that compel private insurers to offer continuing coverage to beneficiaries in the United States. We model wages at various points across the career as a function of the mandated number of months of continuing coverage at labor market entrance. More generous mandated continuing coverage at labor market entrance causes an initial wage decline of 1% that reverses after five years in the labor market, leading to higher wages later in the career. In particular, wage increases are observable up to 30 years after labor market entrance. We provide suggestive evidence that increased job mobility early in the career is a mechanism for observed wage effects.

Keywords: Regulation; Job lock; Continuing coverage; Wage determination (search for similar items in EconPapers)
JEL-codes: H2 I13 J3 (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:78:y:2022:i:c:s0927537122001269

DOI: 10.1016/j.labeco.2022.102236

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