This twice-revised FIRST application aims to provide detailed quantitative evidence on how health insurance affects labor market outcomes. It will assess the impact of health insurance on three different aspects of individual behavior: 1) retirement, 2) job turnover, and 3) unemployment. Data from the HRS and the SIPP will be used to estimate the extent to which the availability of different types of health insurance affects each of these outcomes, and whether these effects vary with factors that reflect how much individuals value health insurance. The application will examine how employer provision of health insurance has affected job characteristics and the structure of employment in the labor market. The application first develops a framework for considering the effect of rising health insurance costs on labor market outcomes. Using individual, industry and firm-level data, it then aims to empirically test the implications that are derived from this framework. These predictions include an increase in the number of hours worked by those with employer-provided health insurance, a decrease in the employment of workers who are provided with employment-based health insurance, and an increase in the employment of workers without employer-provided health insurance, particularly part-time and contingent workers.

Agency
National Institute of Health (NIH)
Institute
National Institute on Aging (NIA)
Type
First Independent Research Support & Transition (FIRST) Awards (R29)
Project #
5R29AG013020-03
Application #
2732574
Study Section
Social Sciences and Population Study Section (SSP)
Project Start
1996-07-01
Project End
2001-06-30
Budget Start
1998-07-15
Budget End
1999-06-30
Support Year
3
Fiscal Year
1998
Total Cost
Indirect Cost
Name
National Bureau of Economic Research
Department
Type
DUNS #
City
Cambridge
State
MA
Country
United States
Zip Code
02138
Carroll, Gabriel D; Choi, James J; Laibson, David et al. (2009) Optimal Defaults and Active Decisions. Q J Econ 124:1639-1674