Dependent Coverage and Parental "Job Lock": Evidence from the Affordable Care Act
Hannah Bae,
Katherine Meckel and
Maggie Shi
No 30200, NBER Working Papers from National Bureau of Economic Research, Inc
Abstract:
Coverage for dependents is a common feature of employer-sponsored insurance. While prior work shows that employees trade off job mobility for their own coverage, there is less evidence on the intra-family spillovers of dependent coverage onto parental labor supply. We study this question using a panel of insurance claims that links de- pendent insurance enrollment with a proxy for parental job retention. We develop a regression discontinuity design that exploits variation in coverage eligibility by dependent birth date from the Affordable Care Act, and find that a one percent increase in the dependent enrollment likelihood leads to a 0.2 percent increase in parental job retention. Job lock induced by dependent coverage is greater for parents who were more likely to be on the margin of a job exit, for families who value dependent coverage more, and for employees of firms with a wider range of insurance options.
JEL-codes: H0 I13 I28 (search for similar items in EconPapers)
Date: 2022-07
New Economics Papers: this item is included in nep-hea
Note: AG CH EH PE
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