Using data on the U.S., we study the effects of employer-sponsored health insurance on dynamic employment substitution between 1990 and 2007 by exploiting the interindustry variation in health care coverage. We find that industries with a high health benefit structure in 1990 have experienced faster employment growth of full-time workers relative to part-time workers, while the relative wage of full-time to part-time workers has declined more in such industries. We argue that considering the dynamic responses of both firms and workers to the benefit structure is crucial to understanding our empirical findings.
Bibliographical noteFunding Information:
This research was supported by the Yonsei Signature Research Cluster Program of 2021 (2021-22-0011). We thank Jaesung Choi, Do Won Kwak, and Haishan Yuen for helpful comments. Lisa Chan and Seoyoon Jeong provided excellent research assistance.
This research was supported by the Yonsei Signature Research Cluster Program of 2021 (2021-22-0011).
© 2021, The Author(s), under exclusive licence to Springer Science+Business Media, LLC, part of Springer Nature.
All Science Journal Classification (ASJC) codes
- Strategy and Management
- Organizational Behavior and Human Resource Management
- Management of Technology and Innovation