Post on 04-Jan-2016
Labor Force Participation and Health Insurance Coverage
A Dynamic Interaction
Catherine McLaughlinEconomic Research Initiative on the Uninsured
University of Michigan
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Worker Take-up Rates, By Gender
50
55
60
65
70
75
80
85
90
1987 1996 1999 2000
FemaleMale
Data: NMES 1987, MEPS 1996 and 1999, CPS 2000
Worker Take-up Rates, By Gender, Marital Status, Kids
50
55
60
65
70
75
80
85
90
Mar/Kids Mar/NoKids Single/Kids Single/NoKids
FemaleMale
Data: CPS 2000
Worker Offer Rates, By Gender, Marital Status, Kids
50
55
60
65
70
75
80
85
90
Mar/Kids Mar/NoKids Single/Kids Single/NoKids
FemaleMale
Data: CPS 2000
% Decliners who are Uninsured, By Marital Status, Kids, and Gender
0
10
20
30
40
50
60
70
80
Single Workers Single Workers w/Children
Married Workers Married Workersw/ Children
FemaleMale
Source: CTS, 1996
Questions for policymakers
• What influence does the availability of a group policy have on labor supply decisions of individual workers?– Entry or exit
• Retirement, back to school, staying home
– Full time or part time– Seasonal or temporary– Occupation and industry
What we know about labor force participation and coverage
• Health insurance is a central determinant of retirement decisions by men– Size of effect not known– Effect on women not known
Source: Gruber and Madrian, 2002
What we think is likely about labor force participation and coverage
• Health insurance is an important factor in the labor supply decisions of secondary earners
What is possible, but there is disagreement in the field
• Health insurance is not a major determinant of the labor supply and welfare exit of low income mothers
• Health insurance plays an important role in job mobility decisions