Interindustry Differentials in Health Coverage and Dynamic Employment Substitution

29 Pages Posted: 18 Jan 2018

See all articles by Youjin Hahn

Youjin Hahn

Yonsei University

Myungkyu Shim

Sogang University

Hee-Seung Yang

KDI School of Public Policy and Management

Date Written: December 1, 2017

Abstract

Using data on the U.S., we study the effects of employer-provided health insurance on dynamic employment substitution between 1990 and 2007 by exploiting the interindustry variation in health care coverage. We find that industries with a high health benefit structure in 1990 have experienced slower employment growth of part-time workers relative to full-time workers, in particular part-time routine workers, while the relative wage of part-time to full-time workers and capital per worker have increased more in such industries. We suggest that this can be explained as firms’ and workers’ optimal responses to the benefit structure.

Keywords: Employer-provided health insurance; Employment substitution; Part-time employment; Routine occupation; Labor supply and demand

JEL Classification: I13, J21, J22, J23, J32

Suggested Citation

Hahn, Youjin and Shim, Myungkyu and Yang, Hee-Seung, Interindustry Differentials in Health Coverage and Dynamic Employment Substitution (December 1, 2017). KDI School of Pub Policy & Management Paper No. 17-13, Available at SSRN: https://ssrn.com/abstract=3090122 or http://dx.doi.org/10.2139/ssrn.3090122

Youjin Hahn

Yonsei University ( email )

Seoul
Korea, Republic of (South Korea)

Myungkyu Shim

Sogang University ( email )

Seoul 121-742
Korea, Republic of (South Korea)

Hee-Seung Yang (Contact Author)

KDI School of Public Policy and Management ( email )

P.O. Box 184
Seoul, 130-868
Korea, Republic of (South Korea)

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