Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/126259
Authors: 
Kolstad, Jonathan T.
Kowalski, Amanda E.
Year of Publication: 
2015
Series/Report no.: 
Upjohn Institute Working Paper 15-219
Abstract: 
We model the labor market impact of the key provisions of the national and Massachusetts "mandate-based" health reforms: individual mandates, employer mandates, and subsidies. We characterize the compensating differential for employer-sponsored health insurance (ESHI) and the welfare impact of reform in terms of "sufficient statistics". We compare welfare under mandate-based reform to welfare in a counterfactual world where individuals do not value ESHI. Relying on the Massachusetts reform, we find that jobs with ESHI pay $2,812 less annually, somewhat less than the cost of ESHI to employers. Accordingly, the deadweight loss of mandate-based health reform was approximately 8 percent of its potential size.
Subjects: 
Affordable Care Act
Massachusetts health reform
welfare effects
JEL: 
I13
J3
Document Type: 
Working Paper

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