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GENDER DIFFERENCES IN THE VALUATION OF EMPLOYER‐PROVIDED HEALTH INSURANCE
Author(s) -
DANESHVARY NASSER,
CLAURETIE TERRENCE M.
Publication year - 2007
Publication title -
economic inquiry
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.823
H-Index - 72
eISSN - 1465-7295
pISSN - 0095-2583
DOI - 10.1111/j.1465-7295.2007.0057.x
Subject(s) - endogeneity , instrumental variable , health insurance , earnings , valuation (finance) , economics , actuarial science , demographic economics , self insurance , medical expenditure panel survey , medical insurance , panel data , health care , labour economics , econometrics , finance , economic growth
We present evidence that accurate estimates of the labor‐earning/employer‐provided health insurance trade‐off must account for two different effects: the heterogeneity of jobs and the endogeneity of health insurance. The size of the trade‐off depends on employees’ contribution to premiums, health‐care needs, and valuation of insurance. We use Medical Expenditure Panel Survey data and instrumental variables/two‐stage least squares. On average, workers accept about 16.5% to 20% lower earnings in return for insurance, and married women value insurance by about 3.5 percentage points more than married men, explaining about 3% of the gender‐earning differentials. Health insurance does not contribute to the unexplained portion of the gender‐pay gap. ( JEL J3, J7, I1)