The effects of the affordable care act dependent coverage mandate on parents’ labor market outcomes

We examine the labor market impacts of Affordable Care Act dependent mandate (ACA-DM), which has significantly increased children's health insurance coverage through parents’ employer-sponsored benefits. Using data from American Community Survey, we find that ACA-DM reduced annual wages by about $2,600. However, probability employment and working hours only decreased marginally. The back-of-the-envelope calculation indicates magnitude estimated wage impact is similar to premium a family plan due ACA-DM. These findings imply deadweight loss associated with expansion likely be small as an increase in employers’ costs offset reduction without significant reductions inputs.