The Affordable Care Act and the Growth of Involuntary Part-Time Employment

Abstract

This study tests whether the employer mandate under the Affordable Care Act (ACA) increased involuntary part-time (IPT) employment. Using data from the Current Population Survey between 1994 and 2015, we find that IPT employment in 2015 exceeded predictions based on economic conditions and the structure of the labor market. More importantly, using difference-in-difference methods, we find that the increase in the probability of IPT employment since passage of the ACA was greater in occupations with a larger share of workers affected by the mandate. Our estimates suggest that approximately 700,000 additional workers without a college degree are in IPT employment as a result of the ACA employer mandate.

Keywords: Affordable Care Act, involuntary part-time employment, employer mandate, health insurance

JEL Classification: J22, J23, J32, J33, H25