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Premium copayments and the trade-off between wages and employer-provided health insurance.

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journal contribution
posted on 12.05.2017, 00:00 by D Lubotsky, CA Olson
This paper estimates the trade-off between salary and health insurance costs using data on Illinois school teachers between 1991 and 2008 that allow us to address several common empirical challenges in this literature. Teachers paid about 17 percent of the cost of individual health insurance and about 46 percent of the cost of their family members' plans through premium contributions, but we find no evidence that teachers' salaries respond to changes in insurance costs. Consistent with a higher willingness to pay for insurance, we find that premium contributions are higher in districts that employ a higher-tenured workforce. We find no evidence that school districts respond to higher health insurance costs by reducing the number of teachers.

History

Publisher Statement

This is the author’s version of a work that was accepted for publication in Journal of Health Economics. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in: Lubotsky, D. and Olson, C. A. Premium copayments and the trade-off between wages and employer-provided health insurance. Journal of Health Economics. 2015. 44: 63-79. 10.1016/j.jhealeco.2015.08.006.

Publisher

Elsevier

issn

0167-6296

Issue date

01/12/2015