Recent Evidence on the ACA and Employment: Has the ACA Been a Job Killer? 2016 Update

The Urban Institute, ACA Implementation — Monitoring and Tracking, 2017

15 Pages Posted: 24 Feb 2017

See all articles by A. Bowen Garrett

A. Bowen Garrett

Urban Institute

Robert Kaestner

University of Chicago; National Bureau of Economic Research (NBER)

Anuj Gangopadhyaya

Urban Institute

Date Written: February 15, 2017

Abstract

This brief examines effects of the Affordable Care Act (ACA) on labor market outcomes using data from the Current Population Survey from 2000 to 2016. Results indicate that through 2016, the ACA had little to no adverse effect on employment and usual hours worked per week. Levels of part-time work (29 or fewer hours per week) have fallen since 2014, but remain at somewhat higher levels than would be expected at this stage of the economic recovery. The higher-than-expected rate of part-time work is driven by increases in voluntary part-time employment. Involuntary part-time employment was lower than expected. These findings suggest that the ACA did not lead to widespread cutbacks in workers’ hours by employers attempting to avoid employer mandate penalties, but may have led some workers to reduce the number of hours they chose to work.

Keywords: ACA, Employment, Part-Time, Labor Suppy, Labor Demand, Health Insurance

JEL Classification: I10, I11, J01, J08, J20

Suggested Citation

Garrett, A. Bowen and Kaestner, Robert and Gangopadhyaya, Anuj, Recent Evidence on the ACA and Employment: Has the ACA Been a Job Killer? 2016 Update (February 15, 2017). The Urban Institute, ACA Implementation — Monitoring and Tracking, 2017. Available at SSRN: https://ssrn.com/abstract=2922288

A. Bowen Garrett (Contact Author)

Urban Institute ( email )

500 L'Enfant Plaza SW
Washington, DC 20024
United States

HOME PAGE: http://www.urban.org/BowenGarrett

Robert Kaestner

University of Chicago ( email )

1155 East 60th Street
Chicago, IL 60637
United States

National Bureau of Economic Research (NBER)

365 Fifth Avenue, 5th Floor
New York, NY 10016-4309
United States

Anuj Gangopadhyaya

Urban Institute ( email )

2100 M Street, NW
Washington, DC 20037
United States

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