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Is There Job Lock? Evidence from the Pre‐HIPAA Era

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  • Mark C. Berger
  • Dan A. Black
  • Frank A. Scott
Abstract
We estimate discrete time hazard models of employment duration and standard logarithmic wage equations using the 1987 and 1990 panels of the Survey of Income and Program Participation (SIPP) to examine the phenomenon of job lock. We lest for job lock using differences‐in‐differences approaches among those with and without employer‐provided health insurance and family members with and without health problems. We find no statistically significant evidence of job lock on employment duration or wages using this approach. We do find some evidence of shorter employment spells for those with employer‐provided health insurance and spouse‐provided health insurance, and longer employment spells for those with employer‐provided health insurance and large families. Others have interpreted these findings as evidence of job lock. However, the wage equation results using these measures are not consistent with job lock. Although anecdotal evidence makes it clear that some workers have been locked into less‐than‐optimal jobs because of the combination of health problems and employer‐provided health insurance, our results do not suggest that this phenomenon is pervasive in the U.S. economy.

Suggested Citation

  • Mark C. Berger & Dan A. Black & Frank A. Scott, 2004. "Is There Job Lock? Evidence from the Pre‐HIPAA Era," Southern Economic Journal, John Wiley & Sons, vol. 70(4), pages 953-976, April.
    • Handle: RePEc:wly:soecon:v:70:y:2004:i:4:p:953-976
    DOI: 10.1002/j.2325-8012.2004.tb00614.x
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    References listed on IDEAS

    as
    1. Gruber, Jonathan & Madrian, Brigitte C., 1997. "Employment separation and health insurance coverage," Journal of Public Economics, Elsevier, vol. 66(3), pages 349-382, December.
    2. Kanika Kapur, 1998. "The Impact of Health on Job Mobility: A Measure of Job Lock," ILR Review, Cornell University, ILR School, vol. 51(2), pages 282-298, January.
    3. Brigitte C. Madrian, 1994. "Employment-Based Health Insurance and Job Mobility: Is there Evidence of Job-Lock?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 109(1), pages 27-54.
    4. Mark C. Berger & Dan A. Black, 1998. "The Duration Of Medicaid Spells: An Analysis Using Flow And Stock Samples," The Review of Economics and Statistics, MIT Press, vol. 80(4), pages 667-675, November.
    5. Donna B. Gilleskie & Byron F. Lutz, 2002. "The Impact of Employer-Provided Health Insurance on Dynamic Employment Transitions," Journal of Human Resources, University of Wisconsin Press, vol. 37(1), pages 129-162.
    6. Gruber, Jonathan, 1994. "The Incidence of Mandated Maternity Benefits," American Economic Review, American Economic Association, vol. 84(3), pages 622-641, June.
    7. Heckman, James J. & Singer, Burton, 1984. "Econometric duration analysis," Journal of Econometrics, Elsevier, vol. 24(1-2), pages 63-132.
    8. Jonathan Gruber & Brigitte C. Madrian, 1994. "Health Insurance and Job Mobility: The Effects of Public Policy on Job-Lock," ILR Review, Cornell University, ILR School, vol. 48(1), pages 86-102, October.
    9. Mark C. Berger & Dan A. Black & Frank A. Scott & Amitabh Chandra, 1999. "Health insurance coverage of the unemployed: COBRA and the potential effects of Kassebaum-Kennedy," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 18(3), pages 430-448.
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