Dependent insurance coverage and parental job lock: Evidence from the Affordable Care Act

Hannah Bae, Katherine Meckel and Maggie Shi

Journal of Public Economics, 2025, vol. 248, issue C

Abstract: Coverage for dependents is a standard feature of employer-sponsored insurance. While prior work shows that employees trade off job mobility for their own coverage, less is known about the intra-family spillovers of dependent coverage on parental labor supply. We study this question using a large panel of employer-based insurance claims that links dependent enrollment to a proxy for parental job retention. We use a regression discontinuity design that exploits a sharp change in the duration of dependent eligibility by birth month under the Affordable Care Act. We find that additional dependent insurance eligibility increases both dependent take-up and parental job retention. This “job lock” effect is strongest among parents more likely to be on the margin of a job exit, for families that place higher value on dependent coverage, and employees of firms offering a broader range of insurance options.

Keywords: Health insurance; Dependent coverage; Job lock (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:pubeco:v:248:y:2025:i:c:s0047272725001379

DOI: 10.1016/j.jpubeco.2025.105439

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