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Who Pays the High Health Costs of Older Workers? Evidence from Prostate Cancer Screening Mandates

15 Pages Posted: 23 Sep 2012 Last revised: 8 Mar 2013

James B. Bailey

Creighton University - Department of Economics; Temple University - Department of Economics

Date Written: December 6, 2012

Abstract

Between 1992 and 2009, 29 US states adopted laws mandating that health insurance plans cover screenings for prostate cancer. Because prostate cancer screenings are used almost exclusively by men over 50, these mandates raise the cost of insuring older men relative to other groups. This paper uses a triple-difference empirical strategy to take advantage of this quasi-random natural experiment in raising the cost of employing older workers. Using IPUMS data from the March Supplement of the Current Population Survey, this paper finds that the increased cost of insuring older workers results in them receiving 3% lower hourly wages, being 2.2% less likely to be employed, and being 2% less likely to have employer-sponsored health insurance.

Keywords: Triple-Difference, IPUMS CPS, Prostate Cancer Screening, Health Insurance, Mandates

JEL Classification: I13, I18, J30, J70

Suggested Citation

Bailey, James B., Who Pays the High Health Costs of Older Workers? Evidence from Prostate Cancer Screening Mandates (December 6, 2012). Available at SSRN: https://ssrn.com/abstract=2150963 or http://dx.doi.org/10.2139/ssrn.2150963

James B. Bailey (Contact Author)

Creighton University - Department of Economics ( email )

2500 California Plaza
Omaha, NE 68178
United States

Temple University - Department of Economics ( email )

Philadelphia, PA 19122
United States

HOME PAGE: http://sites.temple.edu/jamesbailey/

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