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Licensed Unlicensed Requires Authentication Published by De Gruyter May 1, 2009

Changes in Spousal Health Insurance Coverage and Female Labor Supply Decisions

Kandice A. Kapinos

This study examines the changing relationship between spousal health insurance coverage and labor market outcomes for married women over time as healthcare costs have increased. In particular, I investigate how husbands' health insurance coverage offers affect wives' decisions to enter the labor force and work full-time and how this has changed over time. I endeavor to correct for potential biases of these effects by 1) using an instrumental variables model to deal with endogeneity and 2) estimating and netting out likely unobserved heterogeneity biases, such as assortative mating or income effects. Using Current Population Survey data from 1995 to 2005, I find that husbands' employer-provided health insurance coverage has a negative effect on wives' labor supply that has increased (become more negative) over time.

Published Online: 2009-5-1

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