Assessing the Effect of the Affordable Care Act on Part-Time Employment

Andreas Hornstein and David A. Price

Richmond Fed Economic Brief, 2016, issue October

Abstract: The Patient Protection and Affordable Care Act of 2010, commonly known as the Affordable Care Act or ACA, requires larger employers to offer health insurance to their full-time workers or pay penalties for failing to do so. Under some circumstances, the law creates an incentive for employers to replace full-time labor with part-time labor. This Economic Brief considers recent research on whether the ACA has in fact increased the use of part-time labor.

Date: 2016
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