Provider: Ingenta Connect Database: Ingenta Connect Content: application/x-research-info-systems TY - ABST AU - Shiu TI - Two separated effects of employer-provided health insurance on job mobility JO - Applied Economics PY - 2014-10-02T00:00:00/// VL - 46 IS - 28 SP - 3389 EP - 3407 KW - health dynamics KW - employer-provided health insurance KW - J21 KW - endogenous selection KW - J24 KW - labour market efficiency KW - job mobility KW - I10 N2 - We estimate the effect of employer-provided health insurance (EPHI) on job mobility via a dynamic model of joint employment and health insurance decision in the presence of uncertainty about wage rate and health status transitions. The model is based on a Markov decision process in which a hedonic wage approach provides an economic rationale for the different choices and health insurance serves as an input to the health production process. Including health transitions in the model helps us to understand how the availability of EPHI (positive job characteristic) and holding EPHI (the wage-health insurance trade-off) enter into the individuals’ decisions. The model is estimated using the 1999–2000 Medical Expenditure Panel Survey panel 4, and the results show that the ‘pure’ effects of holding EPHI are negligible, the ‘full’ effects of EPHI are significant and the degrees of the inefficiency vary between 14% and 25% across different states. UR - https://www.ingentaconnect.com/content/routledg/raef/2014/00000046/00000028/art00002 M3 - doi:10.1080/00036846.2014.929625 UR - https://doi.org/10.1080/00036846.2014.929625 ER -