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Effects of the Affordable Care Act on Part-Time Employment: Early Evidence

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  • Marcus Dillender
  • Carolyn J. Heinrich
  • Susan Houseman

Abstract

The Affordable Care Act (ACA) requires employers with at least 50 full-timeequivalent employees to offer “affordable” health insurance to employees working 30 or more hours per week. Employers who do not comply may face substantial penalties, but they can circumvent the mandate by reducing employees’ weekly hours below the 30-hour threshold. We examine ACA’s effects on short-hours part-time employment using difference-in-differences models. We find that the ACA increased low-hours, involuntary part-time employment by 500,000–700,000 workers in retail, accommodations, and food services, the industries in which employers are most likely to reduce hours if they choose to circumvent the mandate.

Suggested Citation

  • Marcus Dillender & Carolyn J. Heinrich & Susan Houseman, 2022. "Effects of the Affordable Care Act on Part-Time Employment: Early Evidence," Journal of Human Resources, University of Wisconsin Press, vol. 57(4), pages 1394-1423.
    • Handle: RePEc:uwp:jhriss:v:57:y:2022:i:4:p:1394-1423
    Note: DOI: 10.3368/jhr.57.4.0718-9623R2
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    References listed on IDEAS

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    1. Jonathan T. Kolstad & Amanda E. Kowalski, 2012. "Mandate-Based Health Reform and the Labor Market:� Evidence from the Massachusetts Reform," Cowles Foundation Discussion Papers 1855, Cowles Foundation for Research in Economics, Yale University.
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    4. William E. Even & David A. Macpherson, 2019. "The Affordable Care Act and the Growth of Involuntary Part-Time Employment," ILR Review, Cornell University, ILR School, vol. 72(4), pages 955-980, August.
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    6. Thomas C. Buchmueller & John DiNardo & Robert G. Valletta, 2011. "The Effect of an Employer Health Insurance Mandate on Health Insurance Coverage and the Demand for Labor: Evidence from Hawaii," American Economic Journal: Economic Policy, American Economic Association, vol. 3(4), pages 25-51, November.
    7. Gruber, Jonathan, 1994. "The Incidence of Mandated Maternity Benefits," American Economic Review, American Economic Association, vol. 84(3), pages 622-641, June.
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    10. Maxim L. Pinkovskiy, 2015. "The Affordable Care Act and the labor market: a first look," Staff Reports 746, Federal Reserve Bank of New York.
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    Cited by:

    1. Mark Duggan & Gopi Shah Goda & Emilie Jackson, 2019. "The Effects of the Affordable Care Act on Health Insurance Coverage and Labor Market Outcomes," National Tax Journal, National Tax Association;National Tax Journal, vol. 72(2), pages 261-322, June.
    2. Casey B. Mulligan, 2019. "The Employer Penalty, Voluntary Compliance, and the Size Distribution of Firms: Evidence from a Survey of Small Businesses," NBER Chapters, in: Tax Policy and the Economy, Volume 34, pages 139-171, National Bureau of Economic Research, Inc.
    3. Sojung Lim, 2019. "Mothers’ Nonstandard Employment, Family Structure, and Children’s Health Insurance Coverage," Journal of Family and Economic Issues, Springer, vol. 40(2), pages 148-164, June.
    4. Heim, Bradley & Lurie, Ithai & Mullen, Kathleen J. & Simon, Kosali, 2021. "How Much Do Outside Options Matter? The Effect of Subsidized Health Insurance on Social Security Disability Insurance Benefit Receipt," Journal of Health Economics, Elsevier, vol. 76(C).
    5. William E. Even & David A. Macpherson, 2019. "The Affordable Care Act and the Growth of Involuntary Part-Time Employment," ILR Review, Cornell University, ILR School, vol. 72(4), pages 955-980, August.
    6. Bottasso, Anna & Cerruti, Gianluca & Conti, Maurizio & Stancanelli, Elena G. F., 2022. "The Effects of the Affordable Care Act on Labour Supply and Other Uses of Time," IZA Discussion Papers 15415, Institute of Labor Economics (IZA).
    7. Sezen O. Onal, 2023. "Does the ACA Medicaid Expansion Encourage Labor Market Exits of Older Workers?," Journal of Labor Research, Springer, vol. 44(1), pages 56-93, June.
    8. Lisa Barrow & Bea Rivera & Diane Whitmore Schanzenbach, 2024. "Work, Poverty, and Social Benefits Over the Past Three Decades," Working Papers 24-22, Federal Reserve Bank of Cleveland.
    9. Compton, Andrew, 2019. "A Search Theoretic Model of Part-Time Employment and Multiple Job Holdings," MPRA Paper 97003, University Library of Munich, Germany.
    10. Hanming Fang & Andrew J. Shephard, 2019. "Household Labor Search, Spousal Insurance, and Health Care Reform," NBER Working Papers 26350, National Bureau of Economic Research, Inc.
    11. Janet Gao & Shan Ge & Lawrence D. W. Schmidt & Cristina Tello-Trillo, 2023. "How Do Health Insurance Costs Affect Firm Labor Composition and Technology Investment?," Working Papers 23-47, Center for Economic Studies, U.S. Census Bureau.
    12. Mulligan, Casey, 2018. "The Employer Penalty, Voluntary Compliance, and the Size Distribution of Firms: Evidence from a Survey of Small Businesses," Working Papers 07020, George Mason University, Mercatus Center.

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    More about this item

    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • I13 - Health, Education, and Welfare - - Health - - - Health Insurance, Public and Private

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