Industry Variations in Health Plans and Dynamic Employment Substitution

Youjin Hahn, Myungkyu Shim and Hee-Seung Yang ()

Journal of Labor Research, 2021, vol. 42, issue 3, No 6, 449-467

Abstract: Abstract Using data on the U.S., we study the effects of employer-sponsored health insurance on dynamic employment substitution between 1990 and 2007 by exploiting the interindustry variation in health care coverage. We find that industries with a high health benefit structure in 1990 have experienced faster employment growth of full-time workers relative to part-time workers, while the relative wage of full-time to part-time workers has declined more in such industries. We argue that considering the dynamic responses of both firms and workers to the benefit structure is crucial to understanding our empirical findings.

Keywords: Employer-provided health insurance; Employment substitution; Part-time employment; Labor supply and demand (search for similar items in EconPapers)
Date: 2021
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DOI: 10.1007/s12122-021-09325-8

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