Labor Force Participation and Health Insurance Coverage A Dynamic Interaction Catherine McLaughlin Economic Research Initiative on the Uninsured University.

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Presentation transcript:

Labor Force Participation and Health Insurance Coverage A Dynamic Interaction Catherine McLaughlin Economic Research Initiative on the Uninsured University of Michigan eriu

Worker Take-up Rates, By Gender Data: NMES 1987, MEPS 1996 and 1999, CPS 2000

Worker Take-up Rates, By Gender, Marital Status, Kids Data: CPS 2000

Worker Offer Rates, By Gender, Marital Status, Kids Data: CPS 2000

% Decliners who are Uninsured, By Marital Status, Kids, and Gender 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

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