Abstract
Key provisions within healthcare reform will likely further increase the cost of employer-sponsored insurance. Theory suggests that workers pay for their health insurance through a wage offset. We investigate this issue using data from the Medical Expenditure Panel Survey. GMM estimates aimed at correcting for endogenous worker mobility reveal evidence of a trade-off for workers who are offered health insurance as the only fringe benefit. On the other hand, employees in establishments with a more comprehensive set of benefits enjoy higher wages relative to employees in establishments that offer no benefits. Health also affects the wage-health insurance trade-off.
| Original language | English (US) |
|---|---|
| Pages (from-to) | 541-581 |
| Number of pages | 41 |
| Journal | Industrial Relations |
| Volume | 52 |
| Issue number | 2 |
| DOIs | |
| State | Published - Apr 2013 |