Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/232841
Authors: 
Kim, Seonghoon
Koh, Kanghyock
Year of Publication: 
2021
Series/Report no.: 
IZA Discussion Papers No. 14089
Publisher: 
Institute of Labor Economics (IZA), Bonn
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.
Subjects: 
The Affordable Care Act dependent mandate
dependent health insurance coverage
parents' labor market outcomes
deadweight loss
JEL: 
I18
J32
H51
Document Type: 
Working Paper

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