Equilibrium Labor Market Search and Health Insurance Reform, Second Version

Equilibrium Labor Market Search and Health Insurance Reform

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, health insurance offerin...

Nber Working Paper Series Equilibrium Labor Market Search and Health Insurance Reform

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, health insurance offerin...

Business Cycles in the Equilibrium Model of Labor Market Search and Self-Insurance

The standard Mortensen-Pissarides model of search and matching is extended by introducing capital, risk-averse workers, labor-leisure choice and lack of complete markets to insure away unemployment shocks. The business cycle properties of the model with aggregate productivity shocks are explored, with an emphasis on labor market dynamics. In particular, I ask whether the model can replicate the...

SPECIAL EDITORIAL HEALTH INSURANCE REFORM Labor versus health perspectives

What is the rationale behind this proposal? The proposal states the distortion effect of social security contributions on the labor market, as a major concern to be addressed by the reform. The employer’s contribution share is regarded as a payroll tax, and the assumption is that, removing this share would allow employers to create more jobs, resolving thus the problem of unemployment. To view ...

Nash Bargaining, On-the-job Search and Labor Market Equilibrium