Forum for Science, Industry and Business

Sponsored by:     3M 
Search our Site:

 

Rising health care premiums lead to lower wages and more part-time employment

07.06.2006


In the United States, two-thirds of the nonelderly population is covered by employer-provided health care, either directly or as a dependent. In an important new study forthcoming in the July issue of the Journal of Labor Economics, Katherine Baicker (University of California, Los Angeles) and Amitabh Chandra (Harvard University) demonstrate that the rise in health insurance premiums may increase the ranks of the uninsured and the unemployed by as many as 7 million workers.



"Understanding the relationship between health insurance costs and labor markets is of growing policy importance," write the authors. "Together [our] estimates demonstrate that the labor market effects of rising health insurance are far from neutral."

Baicker and Chandra calculate that a 20% increase in health insurance premiums (smaller than the increase seen in many areas in the past three years) would reduce the probability of being employed by 2.4 percentage points--the equivalent of approximately 3.5 million workers. Annual income is reduced by $1,700 for those who are employed and have employer-provided coverage.


In situations where a firm is constrained from offering lower compensation by minimum wage, union rules, or other provisions of labor law, an additional 3.5 million workers will likely be moved from full-time jobs to part-time without benefits.

"As malpractice costs rise, the price of purchasing health care through any source--employer insurance, nongroup insurance, or out of pocket--will increase," explain the authors. "Workers may be willing to accept lower wages in exchange for costlier health insurance because they would have to pay more on the open market for it, whether or not the increase in premiums is associated with higher value health care."

Suzanne Wu | EurekAlert!
Further information:
http://www.uchicago.edu
http://www.journals.uchicago.edu/JOLE

More articles from Studies and Analyses:

nachricht Innovative genetic tests for children with developmental disorders and epilepsy
11.07.2018 | Christian-Albrechts-Universität zu Kiel

nachricht Oxygen loss in the coastal Baltic Sea is “unprecedentedly severe”
05.07.2018 | European Geosciences Union

All articles from Studies and Analyses >>>

The most recent press releases about innovation >>>

Die letzten 5 Focus-News des innovations-reports im Überblick:

Im Focus: First evidence on the source of extragalactic particles

For the first time ever, scientists have determined the cosmic origin of highest-energy neutrinos. A research group led by IceCube scientist Elisa Resconi, spokesperson of the Collaborative Research Center SFB1258 at the Technical University of Munich (TUM), provides an important piece of evidence that the particles detected by the IceCube neutrino telescope at the South Pole originate from a galaxy four billion light-years away from Earth.

To rule out other origins with certainty, the team led by neutrino physicist Elisa Resconi from the Technical University of Munich and multi-wavelength...

Im Focus: Magnetic vortices: Two independent magnetic skyrmion phases discovered in a single material

For the first time a team of researchers have discovered two different phases of magnetic skyrmions in a single material. Physicists of the Technical Universities of Munich and Dresden and the University of Cologne can now better study and understand the properties of these magnetic structures, which are important for both basic research and applications.

Whirlpools are an everyday experience in a bath tub: When the water is drained a circular vortex is formed. Typically, such whirls are rather stable. Similar...

Im Focus: Breaking the bond: To take part or not?

Physicists working with Roland Wester at the University of Innsbruck have investigated if and how chemical reactions can be influenced by targeted vibrational excitation of the reactants. They were able to demonstrate that excitation with a laser beam does not affect the efficiency of a chemical exchange reaction and that the excited molecular group acts only as a spectator in the reaction.

A frequently used reaction in organic chemistry is nucleophilic substitution. It plays, for example, an important role in in the synthesis of new chemical...

Im Focus: New 2D Spectroscopy Methods

Optical spectroscopy allows investigating the energy structure and dynamic properties of complex quantum systems. Researchers from the University of Würzburg present two new approaches of coherent two-dimensional spectroscopy.

"Put an excitation into the system and observe how it evolves." According to physicist Professor Tobias Brixner, this is the credo of optical spectroscopy....

Im Focus: Chemical reactions in the light of ultrashort X-ray pulses from free-electron lasers

Ultra-short, high-intensity X-ray flashes open the door to the foundations of chemical reactions. Free-electron lasers generate these kinds of pulses, but there is a catch: the pulses vary in duration and energy. An international research team has now presented a solution: Using a ring of 16 detectors and a circularly polarized laser beam, they can determine both factors with attosecond accuracy.

Free-electron lasers (FELs) generate extremely short and intense X-ray flashes. Researchers can use these flashes to resolve structures with diameters on the...

All Focus news of the innovation-report >>>

Anzeige

Anzeige

VideoLinks
Industry & Economy
Event News

Leading experts in Diabetes, Metabolism and Biomedical Engineering discuss Precision Medicine

13.07.2018 | Event News

Conference on Laser Polishing – LaP: Fine Tuning for Surfaces

12.07.2018 | Event News

11th European Wood-based Panel Symposium 2018: Meeting point for the wood-based materials industry

03.07.2018 | Event News

 
Latest News

Subaru Telescope helps pinpoint origin of ultra-high energy neutrino

16.07.2018 | Physics and Astronomy

Barium ruthenate: A high-yield, easy-to-handle perovskite catalyst for the oxidation of sulfides

16.07.2018 | Life Sciences

New research calculates capacity of North American forests to sequester carbon

16.07.2018 | Earth Sciences

VideoLinks
Science & Research
Overview of more VideoLinks >>>