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The Effects of Employer-Provided Health Insurance on Worker Mobility

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  • Thomas C. Buchmueller
  • Robert G. Valletta

Abstract

The authors use data from the 1984 Survey of Income and Program Participation (SIPP) to investigate whether employer-provided health insurance reduced worker mobility (a phenomenon termed “job-lock†). The SIPP provides Information on variables—particularly pension receipt, job tenure, and spouse job change—that were omitted from previous studies and are, the authors argue, key to the estimation of well-defined mobility models. For dual-earner married men and women, the authors estimate a model that accounts for the interaction between husbands' and wives' job change decisions. For both married and single individuals, the results provide fairly strong evidence of job-lock among women, but only weak indications of job-lock among men. The authors speculate that this finding reflects higher health care use by women than by men.

Suggested Citation

  • Thomas C. Buchmueller & Robert G. Valletta, 1996. "The Effects of Employer-Provided Health Insurance on Worker Mobility," ILR Review, Cornell University, ILR School, vol. 49(3), pages 439-455, April.
    • Handle: RePEc:sae:ilrrev:v:49:y:1996:i:3:p:439-455
    DOI: 10.1177/001979399604900304
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    References listed on IDEAS

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    1. Gustman, Alan L. & Steinmeier, Thomas L., 1993. "Pension portability and labor mobility : Evidence from the survey of income and program participation," Journal of Public Economics, Elsevier, vol. 50(3), pages 299-323, March.
    2. Douglas Holtz-Eakin, 1994. "Health Insurance Provision and Labor Market Efficiency in the United States and Germany," NBER Chapters, in: Social Protection versus Economic Flexibility: Is There a Trade-Off?, pages 157-188, National Bureau of Economic Research, Inc.
    3. Brigitte C. Madrian, 1994. "Employment-Based Health Insurance and Job Mobility: Is there Evidence of Job-Lock?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 109(1), pages 27-54.
    4. Rosen, Sherwin, 2007. "Studies in Labor Markets," National Bureau of Economic Research Books, University of Chicago Press, number 9780226726304, April.
    5. repec:ucp:bknber:9780226726281 is not listed on IDEAS
    6. Bartel, Ann P, 1979. "The Migration Decision: What Role Does Job Mobility Play?," American Economic Review, American Economic Association, vol. 69(5), pages 775-786, December.
    7. Jonathan Gruber & Brigitte C. Madrian, 1994. "Health Insurance and Job Mobility: The Effects of Public Policy on Job-Lock," ILR Review, Cornell University, ILR School, vol. 48(1), pages 86-102, October.
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