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On the decline of employment-based health insurance in the US

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  • Norman Thurston

Abstract

Many recent papers have documented that there has been a steady decline in the fraction of workers in the US who receive health insurance through their employer. This paper presents an economic model of the labour market that is consistent with observed trends. The primary finding is that the trend is explained by a change in optimal compensation structures for workers due to the increase in the relative price of health care. The paper concludes with an application to the analysis of the increased prevalence of capitated contracts among employers.

Suggested Citation

  • Norman Thurston, 1999. "On the decline of employment-based health insurance in the US," Applied Economics Letters, Taylor & Francis Journals, vol. 6(10), pages 683-686.
    • Handle: RePEc:taf:apeclt:v:6:y:1999:i:10:p:683-686
    DOI: 10.1080/135048599352501
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    References listed on IDEAS

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    1. Henry S. Farber & Helen Levy, 1998. "Recent Trends in Employer-Sponsored Health Insurance Coverage: Are Bad Jobs Getting Worse?," Working Papers 781, Princeton University, Department of Economics, Industrial Relations Section..
    2. Henry S. Farber & Helen Levy, 1998. "Recent Trends in Employer-Sponsored Health Insurance Coverage: Are Bad Jobs Getting Worse?," Working Papers 781, Princeton University, Department of Economics, Industrial Relations Section..
    3. Farber, Henry S. & Levy, Helen, 2000. "Recent trends in employer-sponsored health insurance coverage: are bad jobs getting worse?," Journal of Health Economics, Elsevier, vol. 19(1), pages 93-119, January.
    4. repec:fth:prinin:398 is not listed on IDEAS
    5. Helen Levy, 1998. "Who Pays for Health Insurance? Employee Contributions to Health Insurance Premiums," Working Papers 777, Princeton University, Department of Economics, Industrial Relations Section..
    6. repec:fth:prinin:402 is not listed on IDEAS
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    Cited by:

    1. Richard J. Cebula, 2008. "Small Firm Size and Health Insurance: A Private Enterprise Perspective," Journal of Private Enterprise, The Association of Private Enterprise Education, vol. 24(Fall 2008), pages 51-77.
    2. Alexander, Gigi & Cebula, Richard & Saadatmand, Yassamand, 2005. "Determinants of the Percent of the Population Enrolled in HMOs," MPRA Paper 51268, University Library of Munich, Germany.
    3. Cebula, Richard, 2010. "Effects of Health Insurance and Medical Care Inflation on Voluntary Enlistment in the Army: An Empirical Study in the United States," MPRA Paper 51246, University Library of Munich, Germany.
    4. Richard Cebula, 2010. "The micro-firm health insurance hypothesis," Applied Economics Letters, Taylor & Francis Journals, vol. 17(11), pages 1067-1072.

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