February 26, 2009
By Paul L. Winfree
How the health insurance system influences the likelihood of
changing jobs and becoming self-employed
This paper investigates the extent to which employer-sponsored
health insurance influenced job mobility between 1995 and 2007.
This time period is important given the recent increase in the cost
of private health insurance and the enactment of the Health
Insurance Portability and Accountability Act in 1996. In addition,
changes in the tax treatment of health insurance for the
self-employed occurred throughout the period. Using data from the
1996-2007 March Supplements of the Current Population Survey, I
find that for married women with employer-sponsored insurance,
having an alternative source of coverage increases their likelihood
of becoming self-employed by 75 percent, while the number of
children they have reduces their likelihood of switching jobs by 7
percent. Overall, I find that having an alternative source of
insurance increases the likelihood of switching jobs by 9 percent.
Finally, I do not find evidence to suggest that job-lock affects
married men. (JEL J20, J38, J60)
CLICK HERE TO VIEW THE FULL
How the health insurance system influences the likelihood ofchanging jobs and becoming self-employed
Paul L. Winfree
Senior Policy Analyst, Simulations
Read More >>
Heritage's daily Morning Bell e-mail keeps you updated on the ongoing policy battles in Washington and around the country.
The subscription is free and delivers you the latest conservative policy perspectives on the news each weekday--straight from Heritage experts.
The Morning Bell is your daily wake-up call offering a fresh, conservative analysis of the news.
More than 450,000 Americans rely on Heritage's Morning Bell to stay up to date on the policy battles that affect them.
Rush Limbaugh says "The Heritage Foundation's Morning Bell is just terrific!"
Rep. Peter Roskam (R-IL) says it's "a great way to start the day for any conservative who wants to get America back on track."
Sign up to start your free subscription today!
The Heritage Foundation is the nation’s most broadly supported public policy research institute,
with hundreds of thousands of individual, foundation and corporate donors. Heritage, founded in
February 1973, has a staff of 275 and an annual expense budget of $82.4 million.
Our mission is to formulate and promote conservative public policies based on the principles of free
enterprise, limited government, individual freedom, traditional American values, and a strong national
defense. Read More
© 2014, The Heritage Foundation Conservative policy research since 1973