Heterogeneity and the effect of mental health parity mandates on the labor market
Martin Andersen ()
Journal of Health Economics, 2015, vol. 43, issue C, 74-84
Health insurance benefit mandates are believed to have adverse effects on the labor market, but efforts to document such effects for mental health parity mandates have had limited success. I show that one reason for this failure is that the association between parity mandates and labor market outcomes vary with mental distress. Accounting for this heterogeneity, I find adverse labor market effects for non-distressed individuals, but favorable effects for moderately distressed individuals and individuals with a moderately distressed family member. On net, I conclude that the mandates are welfare increasing for moderately distressed workers and their families, but may be welfare decreasing for non-distressed individuals.
Keywords: Mental health; Benefit mandates; Insurance; Labor supply (search for similar items in EconPapers)
JEL-codes: I13 I18 (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jhecon:v:43:y:2015:i:c:p:74-84
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