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An Examination of the Intracorrelation of Family Health Insurance

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  • Aouad, Marion

    (University of California, Irvine)

Abstract

A negative shock to one household member can have consequences for other household members. This paper demonstrates the extent of job lock and health insurance plan stemming from the unanticipated health shock of a child family member. In response to the shock, I estimate a 7 – 14 percent decreased likelihood of all family members leaving the current health insurance network and health plan. This is plausibly driven by reduced rates of job switching by the plan's primary policyholder. Furthermore, switching frictions stemming from the non-portability of health insurance products may contribute to the observed job and "health plan lock."

Suggested Citation

  • Aouad, Marion, 2021. "An Examination of the Intracorrelation of Family Health Insurance," IZA Discussion Papers 14541, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp14541
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    References listed on IDEAS

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    Cited by:

    1. Courtney Coile & Maya Rossin-Slater & Amanda Su, 2022. "The Impact of Paid Family Leave on Families with Health Shocks," NBER Working Papers 30739, National Bureau of Economic Research, Inc.
    2. Konstantin Kunze, 2022. "Public Health Insurance of Children and Parental Labor Market Outcomes," Working Papers 349, University of California, Davis, Department of Economics.

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    More about this item

    Keywords

    household; health shock; health insurance; job lock;
    All these keywords.

    JEL classification:

    • I10 - Health, Education, and Welfare - - Health - - - General
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • J10 - Labor and Demographic Economics - - Demographic Economics - - - General
    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General

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