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Interindustry Differentials in Health Coverage and Dynamic Employment Substitution

Youjin Hahn / Myungkyu Shim / Yang, Hee-Seung

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Abstract

Using data on the U.S., we study the effects of employer-provided 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 slower employment growth of part-time workers relative to full-time workers, in particular part-time routine workers, while the relative wage of part-time to full-time workers and capital per worker have increased more in such industries. We suggest that this can be explained as firms’ and workers’ optimal responses to the benefit structure.

Issue Date
2017-12
Publisher
KDI School of Public Policy and Management
Keywords
Employer-provided health insurance; Employment substitution; Part-time employment; Routine occupation; Labor supply and demand
Pages
29
Series Title
KDI School Working Paper 17-13
URI
https://archives.kdischool.ac.kr/handle/11125/30704
DOI
10.2139/ssrn.3090122
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