Health Insurance and Job Mobility: The Effects of Public Policy on Job-Lock

ILR Review ◽  
1994 ◽  
Vol 48 (1) ◽  
pp. 86 ◽  
Author(s):  
Jonathan Gruber ◽  
Brigitte C. Madrian
ILR Review ◽  
1994 ◽  
Vol 48 (1) ◽  
pp. 86-102 ◽  
Author(s):  
Jonathan Gruber ◽  
Brigitte C. Madrian

The authors study a policy of limited insurance portability that has been adopted by a number of states and the federal government over the past 20 years. They find that these “continuation of coverage” mandates, which grant individuals the right to continue purchasing health insurance through their former employers for a specified period after leaving their jobs, are associated with a significant increase in the job mobility of prime age male workers. This finding suggests that “job-lock”—lack of mobility out of Jobs that offer health insurance—arises in large part from short-run concerns over portability rather than from long-run problems.


ILR Review ◽  
1998 ◽  
Vol 51 (2) ◽  
pp. 282-298 ◽  
Author(s):  
Kanika Kapur

The author analyzes data from the National Medical Expenditure Survey of 1987 to measure the importance of “job lock”—the reduction in job mobility due to the non-portability of employer-provided health insurance. Refining the approach commonly used by other researchers investigating the same question, the author finds insignificant estimates of job lock; moreover, the confidence intervals of these estimates exclude large levels of job lock. A replication of an influential previous study that used the same data source shows large and significant job lock, as did that study, but when methodological problems are corrected and improved data are used to construct the job lock variables, job lock is found to be small and statistically insignificant.


ILR Review ◽  
1994 ◽  
Vol 48 (1) ◽  
pp. 68-85 ◽  
Author(s):  
Alan C. Monheit ◽  
Philip F. Cooper

It is widely hypothesized that health insurance deters job mobility because of imperfections in the labor and health insurance markets. This paper describes the nature of the welfare loss attributable to such “job-lock” and reviews several studies that empirically test the job-lock hypothesis. The authors find that estimates of the magnitude and importance of job-lock vary. Studies that support the job-lock hypothesis typically report a 20% to 40% reduction in mobility rates, depending on worker marital status and gender. Their own estimates suggest that although job-lock is present in the labor market, the proportion of workers affected and the magnitude of the welfare loss are less than generally supposed.


Sign in / Sign up

Export Citation Format

Share Document