The labor market effects of introducing national health insurance : evidence from Canada

46 Pages·1993·1.2 MB·English

by  Gruber, Jonathan

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THE LABOR MARKET EFFECTS OF INTRODUCING
NATIONAL HEALTH INSURANCE: EVIDENCE FROM CANADA
Jonathan Gruber
Maria Hanratty
massachusetts
institute of
technology
50 memorial drive
Cambridge, mass. 02139

THE LABOR MARKET EFFECTS OF INTRODUCING
NATIONAL HEALTH INSURANCE: EVIDENCE FROM CANADA
Jonathan Gruber
Maria Hanratty
94-5 Nov. 1993
APR 5 1994
The Labor Market Effects of Introducing National Health Insurance:
Evidence from Canada
Jonathan Gruber
MIT Department of Economics and NBER
MA
Cambridge, 02138
Maria Hanratty
Princeton Department of Economics and NBER
Princeton, NJ 08544
November, 1993
Abstract
While National Health Insurance (NHI) plans in the U.S. are often opposed on the basis of
their potential disemployment effects, there is no existing evidence on the effects of NHI on
employment. We provide such evidence by examining the employment consequences of NHI in
Canada, using the fact that NHI was introduced on a staggered basis across the Canadian provinces.
We examine monthly data on employment, wages, and hours across 8 industries and 10 provinces
over the 1961-1975 period. We find that employment actually rose after the introduction of NHI;
wages increased as well, while average hours were unchanged.
Key words: employer-provided insurance; job mobility; health care reform