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Title:The efficiency of a group-specific mandated benefit revisited: The effect of infertility mandates PDF Logo
Authors:Lahey, Joanna N.
Issue Date:2011
Series/Report no.:Upjohn Institute Working Paper 11-175
Abstract:This paper examines the labor market effects of state health insurance mandates that increase the cost of employing a demographically identifiable group. State mandates requiring that health insurance plans cover infertility treatment raise the relative cost of insuring older women of child-bearing age. Empirically, wages in this group are unaffected, but their total labor input decreases. Workers do not value infertility mandates at cost, and so will not take wage cuts in exchange, leading employers to decrease their demand for this affected and identifiable group. Differences in the empirical effects of mandates found in the literature are explained by a model including variations in the elasticity of demand, moral hazard, ability to identify a group, and adverse selection.
Subjects:labor supply
infertility
health insurance
health insurance mandates
JEL:I18
J23
J13
Document Type:Working Paper
Appears in Collections:Upjohn Institute Working Papers, W. E. Upjohn Institute for Employment Research

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