Working Paper: NBER ID: w4476
Authors: Brigitte C. Madrian
Abstract: This paper assesses the impact of employer-provided health insurance on job mobility by exploring the extent to which workers are 'locked' into their jobs because preexisting conditions exclusions make it expensive for individuals with medical problems to relinquish their current health insurance. I estimate the degree of job-lock by comparing the difference in the turnover rates of those with high and low medical expenses for those with and without employer-provided health insurance. Using data from the 1987 National Medical Expenditure Survey, I estimate that job-lock reduces the voluntary turnover rate of those with employer-provided health insurance by 25 percent, from 16 percent to 12 percent per year.
Keywords: health insurance; job mobility; job lock; employment; preexisting conditions
JEL Codes: I13; J62
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Employer-provided health insurance (I13) | Voluntary turnover rate (J63) |
| High expected medical expenses (H51) | Voluntary turnover rate (J63) |
| Employer-provided health insurance (I13) | Job mobility (J62) |
| Job mobility (J62) | Voluntary turnover rate (J63) |
| Employer-provided health insurance + High expected medical expenses (G52) | Job lock (J68) |