1. Mandate-based health reform and the labor market: Evidence from the Massachusetts reform.
- Author
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Kolstad, Jonathan T. and Kowalski, Amanda E.
- Subjects
- *
HEALTH care reform , *LABOR market , *EMPLOYER-sponsored health insurance , *HEALTH insurance , *EMPLOYEE benefits - Abstract
We model the labor market impact of the key provisions of the national and Massachusetts "mandate-based" health reforms: individual mandates, employer mandates, and subsidies. We characterize the compensating differential for employer-sponsored health insurance (ESHI) and the welfare impact of reform in terms of "sufficient statistics." We compare welfare under mandate-based reform to welfare in a counterfactual world where individuals do not value ESHI. Relying on the Massachusetts reform, we find that jobs with ESHI pay $2812 less annually, somewhat less than the cost of ESHI to employers. Accordingly, the deadweight loss of mandate-based health reform was approximately 8 percent of its potential size. [ABSTRACT FROM AUTHOR]
- Published
- 2016
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