Year

2011

Series

Upjohn Institute Working Paper 11-175

DOI

10.17848/wp11-175

Abstract

This paper examines the labor market effects of state health insurance mandates that increase the cost of employing a demographically identifiable group. State mandates requiring that health insurance plans cover infertility treatment raise the relative cost of insuring older women of child-bearing age. Empirically, wages in this group are unaffected, but their total labor input decreases. Workers do not value infertility mandates at cost, and so will not take wage cuts in exchange, leading employers to decrease their demand for this affected and identifiable group. Differences in the empirical effects of mandates found in the literature are explained by a model including variations in the elasticity of demand, moral hazard, ability to identify a group, and adverse selection.

Issue Date

May 2011

Sponsorship

W.E. Upjohn Institute for Employment Research, Grant No. 10-122-09

Subject Areas

LABOR MARKET ISSUES; Wages, health insurance and other benefits; Health insurance; Nonwage benefits

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Citation

Lahey, Joanna, N. 2011. "The Efficiency of a Group-Specific Mandated Benefit Revisited: The Effect of Infertility Mandates." Upjohn Institute Working Paper 11-175. Kalamazoo, MI: W.E. Upjohn Institute for Employment Research. https://doi.org/10.17848/wp11-175