The Effects of Employer-Provided Health Insurance on Worker Mobility

INDUSTRIAL AND LABOR RELATIONS REVIEW, April 1996

Posted: 19 Jun 1998

See all articles by Thomas C. Buchmueller

Thomas C. Buchmueller

University of California - Paul Merage School of Business - Economics/Health Care; University of Michigan, Stephen M. Ross School of Business; National Bureau of Economic Research (NBER)

Robert G. Valletta

Federal Reserve Bank of San Francisco; IZA Institute of Labor Economics

Abstract

The authors use data from the 1984 Survey of Income and Program Participation (SIPP) to investigate whether employer-provided health insurance reduced worker mobility (a phenomenon termed "job-lock"). The SIPP provides information on variables--particularly pension receipt, job tenure, and spouse job change--that were omitted from previous surveys and are, the authors argue, key to the estimation of well-defined mobility models. For dual-earner married men and women, the authors estimate a model that accounts for the interaction between husbands' and wives' job change decisions. For both married and single individuals, the results provide fairly strong evidence of job-lock among women, but only weak indications of job-lock among men. The authors speculate that this finding reflects higher health care use by women than by men.

JEL Classification: I10, J32, J63

Suggested Citation

Buchmueller, Thomas C. and Valletta, Robert G., The Effects of Employer-Provided Health Insurance on Worker Mobility. INDUSTRIAL AND LABOR RELATIONS REVIEW, April 1996. Available at SSRN: https://ssrn.com/abstract=3015

Thomas C. Buchmueller

University of California - Paul Merage School of Business - Economics/Health Care ( email )

Irvine, CA 92697-3125
United States

HOME PAGE: http://web.gsm.uci.edu/~tbuchmu/

University of Michigan, Stephen M. Ross School of Business ( email )

701 Tappan Street
Ann Arbor, MI MI 48109
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Robert G. Valletta (Contact Author)

Federal Reserve Bank of San Francisco ( email )

101 Market Street
San Francisco, CA 94105
United States
415-974-3345 (Phone)
415-977-4084 (Fax)

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

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