The Reallocation of Compensation in Response to Health Insurance Premium Increases
Abstract
We examine how employees reallocate compensation in response to increase in health insurance premiums. We find that a $1 increase in insurance premiums leads to a 52-cent increase in health insurance expenditures. Approximately 2/3 of this increase is financed through reduced wages and 1/3 through other benefits.
Suggested Citation
Dana P. Goldman, Neeraj Sood, and Arleen Leibowitz. "The Reallocation of Compensation in Response to Health Insurance Premium Increases" Economics Letters 88 (2005): 147-151.
Available at: http://works.bepress.com/neeraj_sood/30