The effects of the affordable care act dependent coverage mandate on parents’ labor market outcomes

Seonghoon Kim, Kanghyock Koh

Research output: Contribution to journalArticlepeer-review

1 Citation (Scopus)

Abstract

We examine the labor market impacts of the Affordable Care Act dependent mandate (ACA-DM), which has significantly increased dependent children's health insurance coverage through parents’ employer-sponsored health benefits. Using data from the American Community Survey, we find that the ACA-DM reduced parents’ annual wages by about $2,600. However, the probability of employment and working hours only decreased marginally. The back-of-the-envelope calculation indicates that the magnitude of the estimated wage impact is similar to the increased insurance premium of a family plan due to the ACA-DM. These findings imply that a deadweight loss associated with the expansion of dependent health coverage is likely to be small as an increase in employers’ labor costs is offset by a reduction in parents’ wages without significant reductions in labor inputs.

Original languageEnglish
Article number102128
JournalLabour Economics
Volume75
DOIs
Publication statusPublished - 2022 Apr

Keywords

  • Deadweight loss
  • Dependent health insurance coverage
  • Parents’ labor market outcomes
  • The affordable care act dependent mandate

ASJC Scopus subject areas

  • Economics and Econometrics
  • Organizational Behavior and Human Resource Management

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