[Job] Locked and [Un]loaded: The Effect of the Affordable Care Act Dependency Mandate on Reenlistment in the U.S. Army

Upjohn Institute Working Paper 19-300

47 Pages Posted: 5 May 2019

See all articles by Michael Kofoed

Michael Kofoed

United States Military Academy

Wyatt Frasier

affiliation not provided to SSRN

Date Written: February 27, 2019

Abstract

One concern with employer-based health insurance is job lock or the inability for employees to leave their current employment for better opportunities for fear of losing benefits. We use the implementation of the Affordable Care Act’s dependency mandate as a natural experiment. Data from the United States Army overcome some limitations in previous studies including the ability to examine workers with fixed contract expiration dates, uniform pay, and health coverage. We find that the ACA decreased reenlistment rates by 3.13 percent for enlisted soldiers aged 23–25. We also find that younger veterans who leave the army are more likely to attend college. These findings show that the ACA reduced job lock and increased college-going.

Keywords: Affordable Care Act, Job Lock, Military Enlistment, GI Bill

JEL Classification: I13, J22, H56

Suggested Citation

Kofoed, Michael and Frasier, Wyatt, [Job] Locked and [Un]loaded: The Effect of the Affordable Care Act Dependency Mandate on Reenlistment in the U.S. Army (February 27, 2019). Upjohn Institute Working Paper 19-300. Available at SSRN: https://ssrn.com/abstract=3364941 or http://dx.doi.org/10.2139/ssrn.3364941

Michael Kofoed (Contact Author)

United States Military Academy ( email )

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West Point, NY 10996
United States
801-540-8789 (Phone)

HOME PAGE: http://https://sites.google.com/site/michaelkofoed1

Wyatt Frasier

affiliation not provided to SSRN

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