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Health insurance reform and part-time work: Evidence from Massachusetts

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  • Dillender, Marcus O.
  • Heinrich, Carolyn J.
  • Houseman, Susan N.

Abstract

A concern with requiring employers to provide health insurance to full-time employees is that employers may increase their use of part-time workers to circumvent the mandate. In this paper, we study the effect of the employer mandate in the Massachusetts health insurance reform on part-time work using a difference-in-differences strategy that compares changes in part-time work in Massachusetts after the reform to changes in various control groups. We find strong evidence that the Massachusetts employer mandate increased part-time employment among low-educated workers and some evidence that it increased part-time employment among younger workers. Our estimate of a 1.7 percentage point increase in part-time employment among workers without a college degree suggests that lower-skilled workers may be vulnerable to having their hours cut so that employers do not have to offer them health insurance.

Suggested Citation

  • Dillender, Marcus O. & Heinrich, Carolyn J. & Houseman, Susan N., 2016. "Health insurance reform and part-time work: Evidence from Massachusetts," Labour Economics, Elsevier, vol. 43(C), pages 151-158.
    • Handle: RePEc:eee:labeco:v:43:y:2016:i:c:p:151-158
    DOI: 10.1016/j.labeco.2016.05.017
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    References listed on IDEAS

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    Cited by:

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    2. Kim, Seonghoon & Koh, Kanghyock, 2018. "Does Health Insurance Make People Happier? Evidence from Massachusetts' Healthcare Reform," IZA Discussion Papers 11879, Institute of Labor Economics (IZA).
    3. Katharine G. Abraham & Melissa S. Kearney, 2020. "Explaining the Decline in the US Employment-to-Population Ratio: A Review of the Evidence," Journal of Economic Literature, American Economic Association, vol. 58(3), pages 585-643, September.
    4. Kavan Kucko & Kevin Rinz & Benjamin Solow, 2017. "Labor Market Effects of the Affordable Care Act: Evidence from a Tax Notch," CARRA Working Papers 2017-07, Center for Economic Studies, U.S. Census Bureau.
    5. Nie, Pu-yan & Wang, Chan & Chen, Zi-yue & Chen, You-hua, 2018. "A theoretic analysis of key person insurance," Economic Modelling, Elsevier, vol. 71(C), pages 272-278.
    6. David Powell, 2016. "Synthetic Control Estimation Beyond Case Studies Does the Minimum Wage Reduce Employment?," Working Papers WR-1142, RAND Corporation.
    7. Daniel Borowczyk-Martins, 2017. "Why does part-time employment increase in recessions?," IZA World of Labor, Institute of Labor Economics (IZA), pages 397-397, October.
    8. Seonghoon Kim & Kanghyock Koh, 2022. "Health insurance and subjective well‐being: Evidence from two healthcare reforms in the United States," Health Economics, John Wiley & Sons, Ltd., vol. 31(1), pages 233-249, January.

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