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The Great Recession and Workers’ Health Benefits

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  • Koh, Kanghyock

Abstract

During a recession, cost-sharing of employer-sponsored health benefits could increase to reduce labor costs in the U.S. Using a variation in the severity of recession shocks across industries, I find evidence that the enrollment rate of high deductible health plans (HDHPs) among workers covered by employer-sponsored health benefits increased more among firms in industries that experienced severe recession shocks. As potential mechanisms, I study employer-side and worker-side mechanisms. I find that employers changed health benefit offerings to force or incentivize workers to enroll in HDHPs. But I find little evidence of an increase in workers’ demand for HDHPs due to a reduction in income. These results suggest that the HDHP enrollment rate increased during the Great Recession, as employers tried to save costs of offering health benefits.

Suggested Citation

  • Koh, Kanghyock, 2018. "The Great Recession and Workers’ Health Benefits," Journal of Health Economics, Elsevier, vol. 58(C), pages 18-28.
    • Handle: RePEc:eee:jhecon:v:58:y:2018:i:c:p:18-28
    DOI: 10.1016/j.jhealeco.2018.01.003
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    References listed on IDEAS

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    Cited by:

    1. Kim, Seonghoon & Koh, Kanghyock, 2021. "The Effects of the Affordable Care Act Dependent Coverage Mandate on Parents' Labor Market Outcomes," IZA Discussion Papers 14089, Institute of Labor Economics (IZA).
    2. Boslett, Andrew & Hill, Elaine, 2022. "Mortality during resource booms and busts," Journal of Environmental Economics and Management, Elsevier, vol. 115(C).
    3. Youjin Hahn & Myungkyu Shim & Hee-Seung Yang, 2021. "Industry Variations in Health Plans and Dynamic Employment Substitution," Journal of Labor Research, Springer, vol. 42(3), pages 449-467, December.
    4. Kim, Seonghoon & Koh, Kanghyock, 2022. "The effects of the affordable care act dependent coverage mandate on parents’ labor market outcomes," Labour Economics, Elsevier, vol. 75(C).

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    More about this item

    Keywords

    The Great Recession; Employer-sponsored health benefits; High deductible health plans;
    All these keywords.

    JEL classification:

    • I13 - Health, Education, and Welfare - - Health - - - Health Insurance, Public and Private
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J32 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions

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