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Industry Variations in Health Plans and Dynamic Employment Substitution

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  • Youjin Hahn

    (Yonsei University)

  • Myungkyu Shim

    (Yonsei University)

  • Hee-Seung Yang

    (Yonsei University)

Abstract

Using data on the U.S., we study the effects of employer-sponsored health insurance on dynamic employment substitution between 1990 and 2007 by exploiting the interindustry variation in health care coverage. We find that industries with a high health benefit structure in 1990 have experienced faster employment growth of full-time workers relative to part-time workers, while the relative wage of full-time to part-time workers has declined more in such industries. We argue that considering the dynamic responses of both firms and workers to the benefit structure is crucial to understanding our empirical findings.

Suggested Citation

  • 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.
    • Handle: RePEc:spr:jlabre:v:42:y:2021:i:3:d:10.1007_s12122-021-09325-8
    DOI: 10.1007/s12122-021-09325-8
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