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Labor Force Participation and Health Insurance Coverage

This study analyzes the dynamic relationship between labor force participation and health insurance coverage, specifically focusing on gender, marital status, and childcare. It examines worker take-up rates, offer rates, and the percentage of uninsured individuals. The study also explores the influence of group policies on individual labor supply decisions and the impact of health insurance on retirement, education, and job choices. While the effect of health insurance on men's retirement decisions is known, the size of the effect and its impact on women remain unclear. The study also highlights the varying opinions on the importance of health insurance in the labor supply decisions of low-income mothers.

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Labor Force Participation and Health Insurance Coverage

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  1. eriu Labor Force Participation and Health Insurance Coverage A Dynamic Interaction Catherine McLaughlin Economic Research Initiative on the Uninsured University of Michigan

  2. Worker Take-up Rates, By Gender Data: NMES 1987, MEPS 1996 and 1999, CPS 2000

  3. Worker Take-up Rates, By Gender, Marital Status, Kids Data: CPS 2000

  4. Worker Offer Rates, By Gender, Marital Status, Kids Data: CPS 2000

  5. % Decliners who are Uninsured, By Marital Status, Kids, and Gender Source: CTS, 1996

  6. Questions for policymakers • What influence does the availability of a group policy have on labor supply decisions of individual workers? • Entry or exit • Retirement, back to school, staying home • Full time or part time • Seasonal or temporary • Occupation and industry

  7. What we know about labor force participation and coverage • Health insurance is a central determinant of retirement decisions by men • Size of effect not known • Effect on women not known Source: Gruber and Madrian, 2002

  8. What we think is likely about labor force participation and coverage • Health insurance is an important factor in the labor supply decisions of secondary earners

  9. What is possible, but there is disagreement in the field • Health insurance is not a major determinant of the labor supply and welfare exit of low income mothers • Health insurance plays an important role in job mobility decisions

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