Working Paper: NBER ID: w18060
Authors: Cathy J. Bradley; David Neumark; Scott Barkowski
Abstract: Employment-contingent health insurance creates incentives for ill workers to remain employed at a sufficient level (usually full-time) to maintain access to health insurance coverage. We study employed married women, newly diagnosed with breast cancer, comparing labor supply responses to breast cancer diagnoses between women dependent on their own employment for health insurance and women with access to health insurance through their spouse's employer. We find evidence that women more dependent on their own job for health insurance reduce their labor supply by less after a diagnosis of breast cancer - the estimate difference is about 5.5 to 7 percent. Women's subjective responses to questions about working more to maintain health insurance are consistent with the conclusions from observed behavior.
Keywords: Health Insurance; Labor Supply; Breast Cancer; Job Lock
JEL Codes: I13; J26
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Employer-provided health insurance (ECHI) (G52) | labor supply reduction after breast cancer diagnosis (J22) |
| Dependence on ECHI (I10) | labor supply response to health shocks (J22) |
| Breast cancer diagnosis (Y50) | labor supply reduction (J20) |
| Employer-provided health insurance (ECHI) (G52) | likelihood of remaining employed post-diagnosis (J63) |
| Employer-provided health insurance (ECHI) (G52) | working more hours post-diagnosis (J22) |