Title

Effects of the Affordable Care Act on Part-Time Employment: Early Evidence

Publication Date

7-5-2022

Source

The Journal of Human Resources 57(4): 1394-1423

Abstract

The Affordable Care Act (ACA) requires employers with at least 50 full-time equivalent employees to offer “affordable” health insurance to employees working 30 or more hours per week. Employers who do not comply may face substantial penalties, but they can circumvent the mandate by reducing employees’ weekly hours below the 30-hour threshold. We examine ACA’s effects on short-hours part-time employment using difference-in-differences models. We find that the ACA increased low-hours, involuntary part-time employment by 500,000–700,000 workers in retail, accommodations, and food services, the industries in which employers are most likely to reduce hours if they choose to circumvent the mandate.

DOI

10.3368/jhr.57.4.0718-9623R2

Publisher

The University of Wisconsin Press

Subject Areas

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

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Citation

Dillender, Marcus O., Carolyn J. Heinrich, and Susan N. Houseman. 2022. "Effects of the Affordable Care Act on Part-Time Employment: Early Evidence." The Journal of Human Resources 57(4): 1394-1423. https://doi.org/10.3368/jhr.57.4.0718-9623R2