The Incidence of Mandated Maternity Benefits
American Economic Review, 1994, vol. 84, issue 3, 622-41
The author considers the labor-market effects of mandates that raise the costs of employing a demographically identifiable group. The efficiency of these policies will be largely dependent on the extent to which their costs are shifted to group-specific wages. The author studies several state and federal mandates that stipulated that childbirth be covered comprehensively in health insurance plans, raising the relative cost of insuring women of childbearing age. He finds substantial shifting of the costs of these mandates to the wages of the targeted group. Correspondingly, he finds little effect on total labor input for that group. Copyright 1994 by American Economic Association.
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