Changes in Spousal Health Insurance Coverage and Female Labor Supply Decisions

Forum for Health Economics and Policy, Forthcoming

Posted: 23 Apr 2009

Date Written: February 17, 2009

Abstract

This study examines the changing relationship between spousal health insurance coverage and labor market outcomes for married women over time as healthcare costs have increased. In particular, I investigate how husbands’ health insurance coverage offers affect wives’ decisions to enter the labor force and work full-time and how this has changed over time. I endeavor to correct for potential biases of these effects by 1) using an instrumental variables model to deal with endogeneity and 2) estimating and netting out likely unobserved heterogeneity biases, such as assortative mating or income effects. Using Current Population Survey data from 1995 to 2005, I find that husband’s employer provided health insurance coverage has a negative effect on wife’s labor supply that has increased (become more negative) over time.

Keywords: employer provided health insurance, female labor supply

JEL Classification: J2, I1

Suggested Citation

Kapinos, Kandice A., Changes in Spousal Health Insurance Coverage and Female Labor Supply Decisions (February 17, 2009). Forum for Health Economics and Policy, Forthcoming, Available at SSRN: https://ssrn.com/abstract=1389942

Kandice A. Kapinos (Contact Author)

RAND Corporation ( email )

1776 Main Street
P.O. Box 2138
Santa Monica, CA 90407-2138
United States

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