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
Neeraj Sood, Dana Golman, and Arleen Leibowitz. "The reallocation of compensation in response to health insurance premium increases" Economics Letters 88 (2004): 147-151.