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Labor Market Consequences of State Mental Health Parity Mandates

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  • Cseh Attila

    (Valdosta State University)

Abstract

This paper analyzes the effects of state mental health parity mandates on the labor and insurance markets. In particular, I investigate the effect of parity regulations along five margins: having employer provided health insurance coverage, employer contributions to health insurance premiums, the probability of full-time employment, working hours, and wages for a sample of private workers in firms with less than 100 employees using the Annual Demographic Surveys (March CPS) for the years 1999-2004 (and also in an extended sample of CPS 1992-2004). It is hypothesized that if parity mandates are costly they will have an impact on at least one of the above margins. I find no evidence for any of the most feared impact: a reduction in the probability of having employer-provided health insurance coverage or that state mental health parity mandates have decreased the generosity of employers' contributions to health insurance premiums. The results also lack any evidence of an impact on labor market composition or of costs having been passed onto workers in terms of lower wages.

Suggested Citation

  • Cseh Attila, 2008. "Labor Market Consequences of State Mental Health Parity Mandates," Forum for Health Economics & Policy, De Gruyter, vol. 11(2), pages 1-34, April.
    • Handle: RePEc:bpj:fhecpo:v:11:y:2008:i:2:n:5
    DOI: 10.2202/1558-9544.1085
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    References listed on IDEAS

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    1. Katherine Baicker & Amitabh Chandra, 2006. "The Labor Market Effects of Rising Health Insurance Premiums," Journal of Labor Economics, University of Chicago Press, vol. 24(3), pages 609-634, July.
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    7. Feldman, Roger, 1993. "Who pays for mandated health insurance benefits?," Journal of Health Economics, Elsevier, vol. 12(3), pages 341-348, October.
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    Cited by:

    1. Andersen, Martin, 2015. "Heterogeneity and the effect of mental health parity mandates on the labor market," Journal of Health Economics, Elsevier, vol. 43(C), pages 74-84.
    2. Joanna N. Lahey, 2012. "The efficiency of a group‐specific mandated benefit revisited: The effect of infertility mandates," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 31(1), pages 63-92, December.
    3. Kyung Min Lee & Chanup Jeung, 2021. "The incidence of the healthcare costs of chronic conditions," International Journal of Health Economics and Management, Springer, vol. 21(4), pages 473-493, December.
    4. Atsuko Tanaka & Laurel Beck, "undated". "Mental Well-being of the Bereaved and Labor Market Outcomes," Working Papers 2015-24, Department of Economics, University of Calgary, revised 19 Nov 2015.
    5. James Bailey, 2014. "Who pays the high health costs of older workers? Evidence from prostate cancer screening mandates," Applied Economics, Taylor & Francis Journals, vol. 46(32), pages 3931-3941, November.
    6. Antwi, Yaa Akosa & Maclean, J. Catherine, 2017. "State Health Insurance Mandates and Labor Market Outcomes: New Evidence on Old Questions," IZA Discussion Papers 10578, Institute of Labor Economics (IZA).
    7. Jinqi Ye, 2017. "The Effects of State and Federal Mental Health Parity Laws on Working Time," Center for Policy Research Working Papers 200, Center for Policy Research, Maxwell School, Syracuse University.
    8. Li, Xiaoxue & Ye, Jinqi, 2017. "The spillover effects of health insurance benefit mandates on public insurance coverage: Evidence from veterans," Journal of Health Economics, Elsevier, vol. 55(C), pages 45-60.

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