Heterogeneity and the effect of mental health parity mandates on the labor market

UNCG Author/Contributor (non-UNCG co-authors, if there are any, appear on document)
Martin S. Andersen, Associate Professor (Creator)
Institution
The University of North Carolina at Greensboro (UNCG )
Web Site: http://library.uncg.edu/

Abstract: Health insurance benefit mandates are believed to have adverse effects on the labor market, but efforts to document such effects for mental health parity mandates have had limited success. I show that one reason for this failure is that the association between parity mandates and labor market outcomes vary with mental distress. Accounting for this heterogeneity, I find adverse labor market effects for non-distressed individuals, but favorable effects for moderately distressed individuals and individuals with a moderately distressed family member. On net, I conclude that the mandates are welfare increasing for moderately distressed workers and their families, but may be welfare decreasing for non-distressed individuals.

Additional Information

Publication
Journal of Health Economics, 43
Language: English
Date: 2015
Keywords
mental health, benefit mandates, insurance, labor supply

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