Equilibrium Labor Market Search and Health Insurance Reform


ShanghaiTech SEM Working Paper No. 2018-010

Hanming Fang

ShanghaiTech University - School of Entrepreneurship and Management


We present and empirically implement an equilibrium labor market search model where risk averse workers facing medical expenditure shocks are matched with firms making health insurance coverage decisions. Our model delivers a rich set of predictions that can account for a wide variety of phenomenon observed in the data including the correlations among firm sizes, wages, employer-sponsored health insurance offering rates, turnover rates and workers' health compositions... 

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Keywords: Health, Health Insurance, Health Care Reform, Labor Market Equilibrium

Date Written: June 11th, 2018

Available at SSRN: https://ssrn.com/abstract=3195661