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Government regulation and wages: Evidence from continuing coverage mandates

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  • Maclean, Johanna Catherine
  • Webber, Douglas

Abstract

We examine the wage effects of health insurance market regulations that compel private insurers to offer continuing coverage to beneficiaries in the United States. We model wages at various points across the career as a function of the mandated number of months of continuing coverage at labor market entrance. More generous mandated continuing coverage at labor market entrance causes an initial wage decline of 1% that reverses after five years in the labor market, leading to higher wages later in the career. In particular, wage increases are observable up to 30 years after labor market entrance. We provide suggestive evidence that increased job mobility early in the career is a mechanism for observed wage effects.

Suggested Citation

  • Maclean, Johanna Catherine & Webber, Douglas, 2022. "Government regulation and wages: Evidence from continuing coverage mandates," Labour Economics, Elsevier, vol. 78(C).
    • Handle: RePEc:eee:labeco:v:78:y:2022:i:c:s0927537122001269
    DOI: 10.1016/j.labeco.2022.102236
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    1. Rahi Abouk & John S. Earle & Johanna Catherine Maclean & Sungbin Park, 2024. "Promoting Public Health with Blunt Instruments: Evidence from Vaccine Mandates," NBER Working Papers 32286, National Bureau of Economic Research, Inc.

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    More about this item

    Keywords

    Regulation; Job lock; Continuing coverage; Wage determination;
    All these keywords.

    JEL classification:

    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • I13 - Health, Education, and Welfare - - Health - - - Health Insurance, Public and Private

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